CommScope Holding Co. Inc. Outlook Revised To Negative On Worsening Credit Metics From Weaker Demand; Ratings Affirmed - S&P Global Ratings’ Credit Research

CommScope Holding Co. Inc. Outlook Revised To Negative On Worsening Credit Metics From Weaker Demand; Ratings Affirmed

CommScope Holding Co. Inc. Outlook Revised To Negative On Worsening Credit Metics From Weaker Demand; Ratings Affirmed - S&P Global Ratings’ Credit Research
CommScope Holding Co. Inc. Outlook Revised To Negative On Worsening Credit Metics From Weaker Demand; Ratings Affirmed
Published Sep 18, 2023
5 pages (2845 words) — Published Sep 18, 2023
Price US$ 150.00  |  Buy this Report Now

About This Report

  
Abstract:

CommScope Holding Co. Inc., a provider of network infrastructure products, has seen weak customer demand from a large inventory overhang and tougher macroeconomic environment. Due to these headwinds, we expect CommScope to see elevated leverage and limited free operating cash flow (FOCF) generation after mandatory debt amortization payments in 2023 and 2024. Therefore, we revised our outlook on CommScope to negative from stable and affirmed our 'B-' issuer credit rating. We also affirmed our 'B' issue-level and '2' recovery rating on CommScope's secured debt and our 'CCC+' issue-level rating and '5' recovery rating on its unsecured debt. The negative outlook reflects our expectation that CommScope's leverage will be elevated above the 9x area and FOCF generation will be limited after

  
Brief Excerpt:

...September 18, 2023 - CommScope Holding Co. Inc., a provider of network infrastructure products, has seen weak customer demand from a large inventory overhang and tougher macroeconomic environment. - Due to these headwinds, we expect CommScope to see elevated leverage and limited free operating cash flow (FOCF) generation after mandatory debt amortization payments in 2023 and 2024. - Therefore, we revised our outlook on CommScope to negative from stable and affirmed our 'B-' issuer credit rating. - We also affirmed our 'B' issue-level and '2' recovery rating on CommScope's secured debt and our '###+' issue-level rating and '5' recovery rating on its unsecured debt. - The negative outlook reflects our expectation that CommScope's leverage will be elevated above the 9x area and FOCF generation will be limited after debt amortization payments in 2023 and 2024 on weaker demand from a tougher macroeconomic environment and prolonged inventory overhang. We expect CommScope will address the 2025...

  
Report Type:

Ratings Action

Issuer
CommScope Holding Co. Inc.
GICS
Communications Equipment (45201020)
Sector
Global Issuers
Country
United States
Region
United States
Format:
PDF Adobe Acrobat
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Cite this Report

  
MLA:
S&P Global Ratings’ Credit Research. "CommScope Holding Co. Inc. Outlook Revised To Negative On Worsening Credit Metics From Weaker Demand; Ratings Affirmed" Sep 18, 2023. Alacra Store. May 20, 2025. <http://www.alacrastore.com/s-and-p-credit-research/CommScope-Holding-Co-Inc-Outlook-Revised-To-Negative-On-Worsening-Credit-Metics-From-Weaker-Demand-Ratings-Affirmed-3056612>
  
APA:
S&P Global Ratings’ Credit Research. (). CommScope Holding Co. Inc. Outlook Revised To Negative On Worsening Credit Metics From Weaker Demand; Ratings Affirmed Sep 18, 2023. New York, NY: Alacra Store. Retrieved May 20, 2025 from <http://www.alacrastore.com/s-and-p-credit-research/CommScope-Holding-Co-Inc-Outlook-Revised-To-Negative-On-Worsening-Credit-Metics-From-Weaker-Demand-Ratings-Affirmed-3056612>
  
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