S&P downgrades Windstream

S&P said it lowered its issuer credit rating on Windstream Holdings Inc. to SD from CC.

The agency also lowered the issue-level ratings on the company's 7¾% senior notes due in 2021, 7½% senior notes due in 2022, 7½% senior notes due in 2023, 6 3/8% senior notes due in 2023 and 8¾% senior notes due in 2024 to D from C.

Windstream exchanged about $1 billion in face value of subsidiary Windstream Services' 7¾% senior notes due in 2021, 7½% senior notes due in 2022, 7½% senior notes due in 2023, 6 3/8% senior notes due in 2023 and 8¾% senior notes due in 2024 at a discount to par.

S&P said it expects that the issue-level rating on the 6 3/8% senior notes due in 2023 will remain D because a material amount remains outstanding and the agency believes these issues could be subject to further subpar repurchases.

At the same time, the agency placed the B+ issue-level rating on subsidiaries Windstream Services LLC's and Windstream Holding of the Midwest Inc.'s senior secured debt on CreditWatch with negative implications.

The CreditWatch placement indicates the potential for at least a one notch downgrade, depending on the ultimate issuer credit rating on Windstream, S&P said.

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