Moody’s cuts Consolidated Communications

Moody’s Investors Service said it downgraded the corporate family rating of Consolidated Communications, Inc. to B2 from B1 and its probability of default rating to B2-PD from B1-PD.

The first-lien credit facility, consisting of a $110 million revolver and $1.8 billion in term loans, was downgraded to B1 from Ba3.

Moody's also downgraded the company's senior unsecured notes to Caa1 from B3.

The speculative grade liquidity rating remains at SGL-2.

The outlook is stable.

“The downgrade is the result of Consolidated's difficulties stabilizing negative legacy revenue trends and growing EBITDA which has delayed the pace of previously expected deleveraging,” the agency said in a news release.

“Excluding divestitures, revenue for the second quarter of 2019 declined 4.4% over the prior year's quarter.”

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