Connect Holding II LLC First-Lien First-Out Debt Rating Lowered To ?CCC+?, Recovery Rating Revised To ?3' - S&P Global Ratings’ Credit Research

Connect Holding II LLC First-Lien First-Out Debt Rating Lowered To ?CCC+?, Recovery Rating Revised To ?3'

Connect Holding II LLC First-Lien First-Out Debt Rating Lowered To ?CCC+?, Recovery Rating Revised To ?3' - S&P Global Ratings’ Credit Research
Connect Holding II LLC First-Lien First-Out Debt Rating Lowered To ?CCC+?, Recovery Rating Revised To ?3'
Published Aug 20, 2025
4 pages (1821 words) — Published Aug 20, 2025
Price US$ 150.00  |  Buy this Report Now

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Abstract:

NEW YORK (S&P Global Ratings) Aug. 20, 2025--S&P Global Ratings today lowered its issue-level rating on Connect Holding II LLC?s (dba Brightspeed) senior secured first-lien first-out (FL1O) debt to 'CCC+' from 'B-' and revised the recovery rating to '3' from '2'. This reflects the increased FL1O debt within our assumed recovery waterfall, which reduces the potential recovery value available for FL1O lenders in our simulated default scenario. The '3' recovery rating indicates our expectation for meaningful (50%-70%; rounded estimate: 60%) recovery for noteholders in the event of a default. Last week, Brightspeed issued an additional $1.6 billion of senior secured FL1O notes due 2031 (not rated), following a $575 million FL1O debt issuance in June 2025. Our ratings on the

  
Brief Excerpt:

...August 20, 2025 NEW YORK (S&P Global Ratings) Aug. 20, 2025--S&P Global Ratings today lowered its issue-level rating on Connect Holding II LLC's (dba Brightspeed) senior secured first-lien first-out (FL1O) debt to '###+' from 'B-' and revised the recovery rating to '3' from '2'. This reflects the increased FL1O debt within our assumed recovery waterfall, which reduces the potential recovery value available for FL1O lenders in our simulated default scenario. The '3' recovery rating indicates our expectation for meaningful (50%-70%; rounded estimate: 60%) recovery for noteholders in the event of a default. Last week, Brightspeed issued an additional $1.6 billion of senior secured FL1O notes due 2031 (not rated), following a $575 million FL1O debt issuance in June 2025. Our ratings on the company's other debt obligations, including the `###+' issuer credit rating, and negative outlook remain unchanged. The recent incremental debt issuance strengthens the company's liquidity position. However,...

  
Report Type:

Ratings Action

Issuer
Connect Holding II LLC
Sector
Global Issuers
Country
United States
Region
United States
Format:
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S&P Global Ratings’ Credit Research—S&P Global Ratings’ credit research provides analysis on issuers and debt obligations of corporations, states and municipalities, financial institutions, insurance companies and sovereign governments. S&P Global Ratings also offers insight into the credit risk of structured finance deals, providing an independent view of credit risk associated with a growing array of debt-securitized instruments.

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Cite this Report

  
MLA:
S&P Global Ratings’ Credit Research. "Connect Holding II LLC First-Lien First-Out Debt Rating Lowered To ?CCC+?, Recovery Rating Revised To ?3'" Aug 20, 2025. Alacra Store. Nov 05, 2026. <http://www.alacrastore.com/s-and-p-credit-research/Connect-Holding-II-LLC-First-Lien-First-Out-Debt-Rating-Lowered-To-CCC-Recovery-Rating-Revised-To-3-3427998>
  
APA:
S&P Global Ratings’ Credit Research. (). Connect Holding II LLC First-Lien First-Out Debt Rating Lowered To ?CCC+?, Recovery Rating Revised To ?3' Aug 20, 2025. New York, NY: Alacra Store. Retrieved Nov 05, 2026 from <http://www.alacrastore.com/s-and-p-credit-research/Connect-Holding-II-LLC-First-Lien-First-Out-Debt-Rating-Lowered-To-CCC-Recovery-Rating-Revised-To-3-3427998>
  
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