CommScope Holding Co. Inc. Ratings Placed On CreditWatch Negative On Weak Cable Operator Spending

On Aug. 8, 2019, telecommunications equipment and components provider CommScope Holding Co Inc. provided lower-than-expected guidance for the third quarter due to weakness in cable operator spending. We are placing all of our ratings on the company, including our 'B+' issuer credit rating, on CreditWatch with negative implications. The CreditWatch reflects that continued weakness in cable operator spending would likely preclude the company from reducing its leverage below 6x in 2020, which is the level we require to maintain our current rating. SAN FRANCISCO (S&P Global Ratings) Aug. 8, 2019—S&P Global Ratings today took the rating actions listed above. The CreditWatch placement follows CommScope's lower-than-expected guidance for the third quarter, including that its EBITDA will decline to the $310 million-$370

...August 8, 2019 - On Aug. 8, 2019, telecommunications equipment and components provider CommScope Holding Co Inc. provided lower-than-expected guidance for the third quarter due to weakness in cable operator spending. - We are placing all of our ratings on the company, including our 'B+' issuer credit rating, on CreditWatch with negative implications. - The CreditWatch reflects that continued weakness in cable operator spending would likely preclude the company from reducing its leverage below 6x in 2020, which is the level we require to maintain our current rating. SAN FRANCISCO (S&P Global Ratings) Aug. 8, 2019--S&P Global Ratings today took the rating actions listed above. The CreditWatch placement follows CommScope's lower-than-expected guidance for the third quarter, including that its EBITDA will decline to the $310 million-$370 million range (prior S&P Global forecast for about $400 million) due to weak cable operator spending. If this trend continues, it will make it increasingly...

Ratings Action