CommScope Holding Co. Inc.

The stable outlook reflects our view that although supply chain disruptions will increase expense and lead time for key materials and increased restructuring spending will affect credit metrics in the near term, CommScope's revenue will return to growth in 2021 as broadband network infrastructure spending continues to grow through the end of 2021 and U.S. wireless carriers ramps its 5G networks. Expense reductions actions should support EBITDA margin growing into the high-teens in 2022, and we expect the company to sustainably generate positive free cash flow, even if at reduced levels, in 2021. At CommScope's current leverage levels, we would primarily look to potential liquidity issues as a catalyst for further downgrades. Specifically, we would look to: Negative free cash

...Core business segments have stabilized and seen growth rebound in the first half of 2021, but materially lower leverage will require sustained strong execution over an extended period. CommScope Holding Co. Inc.'s core Broadband, Outdoor Networks, and Venue & Campus businesses rebounded from a 2020 nadir in the first half of 2021, with revenue (excluding Home Networks) growing by 14% in the first six months. Broadband led the segments reporting growth over 20% in both quarters as increased data traffic from remote work and education has led network operators to invest in bandwidth and push fiber deployments deeper into their infrastructure. The Outdoor Wireless segment began to see traction from 5G network spending in the second quarter, and Venue and Campus benefitted from strong international demand. Although we view this strong recent topline performance as supportive and indicative of resilience in a business that had been plagued by weak demand for two years, we continue to expect...

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