GCI LLC Assigned 'B' Rating And Stable Outlook

Liberty Interactive Corp. (LIC) acquired U.S. diversified telecommunications provider GCI LLC (which had earlier absorbed GCI Inc. and GCI Holdings Inc.), merged it with other assets of subsidiary Liberty Ventures, and split it off from LIC. We are assigning our 'B' corporate credit rating and stable outlook to GCI LLC. We are also lowering the corporate credit rating on GCI Inc. to 'B' from 'BB-', removing it from CreditWatch negative, and subsequently withdrawing it. At the same time, we are lowering the issue-level rating on GCI's secured debt facilities to 'BB-' from 'BB+'. The recovery rating remains '1'. We are also lowering the issue-level rating on GCI's unsecured debt to 'B+' from 'BB-' and revising the recovery rating to '2'(capped)

...+ Liberty Interactive Corp. (LIC) acquired U.S. diversified telecommunications provider GCI LLC (which had earlier absorbed GCI Inc. and GCI Holdings Inc.), merged it with other assets of subsidiary Liberty Ventures, and split it off from LIC. + We are assigning our 'B' corporate credit rating and stable outlook to GCI LLC. + We are also lowering the corporate credit rating on GCI Inc. to 'B' from '##-', removing it from CreditWatch negative, and subsequently withdrawing it. + At the same time, we are lowering the issue-level rating on GCI's secured debt facilities to '##-' from '##+'. The recovery rating remains '1'. + We are also lowering the issue-level rating on GCI's unsecured debt to 'B+' from '##-' and revising the recovery rating to '2'(capped) from '4'. + The stable outlook on GCI is based on our expectation that the company's leverage will remain in the mid-6x area through 2018 as residential video and voice subscriber losses fully offset growth in data services revenue. On March...

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