Moody’s downgrades Onvoy, debt

Moody's Investors Service said it downgraded Onvoy, LLC’s corporate family rating to B3 from B2 due to heightened operational and credit risk stemming from a rapid reduction in voice and data traffic between the four major wireless carriers, an attrition rate that exceeded prior expectations of a slower decline.

The agency also downgraded Onvoy's probability of default rating to B3-PD from B2-PD and its first-lien secured rating to B2 from B1.

The outlook remains stable as Moody's believes this abrupt revenue setback is one time in nature and continues to expect future revenue and EBITDA growth as adoption rates for the company's cloud-based communications services increase.

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