Fitch revises BlueFocus to negative

Fitch Ratings said it revised the outlook on BlueFocus Communication Group Co. Ltd. to negative from stable and affirmed its long-term foreign- and local-currency issuer default ratings at B+.

The agency also affirmed the expected rating of B+(EXP) with a recovery rating of RR4 on wholly owned Blue Skyline Communication Ltd.’s proposed notes, which will be unconditionally and irrevocably guaranteed by BlueFocus.

Fitch said the negative outlook reflects its expectation of weaker than previously envisaged profitability and cash generation, slower deleveraging to achieve the company's target of debt/EBITDA of under 4 times, and uncertainties over sourcing attractive cash-generative acquisitions to replace a deal with Cogint that was terminated.

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