S&P lifts Zayo, debt; assigns debt ratings

S&P said it raised its corporate credit rating on Zayo Group LLC to B+ from B and removed all ratings from CreditWatch, where they were placed with positive implications on Nov. 30.

The outlook is stable.

At the same time, the agency assigned its BB issue-level rating and 1 recovery rating to the proposed $650 million term loan B-2 due 2024 and raised its existing issue-level ratings on the secured debt to BB from BB-. The recovery rating remains 1, indicating an expectation for substantial recovery (90%-100%) in a payment default scenario.

S&P also assigned a B issue-level rating and 5 recovery rating to the proposed $800 million senior unsecured notes and raised the issue-level ratings on the existing unsecured debt to B from B-. The recovery rating remains 5, indicating an expectation for meaningful (10%-30%; lower end of the range) recovery in the event of a payment default.

"The upgrade reflects our increased confidence in the cash flow stability of the business stemming from the company's significant scale, customer diversity, national footprint, dark fiber exposure, and favorable industry trends," S&P credit analyst William Savage said in a news release.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.