...March 22, 2023 NEW YORK (S&P Global Ratings) March 22, 2023--S&P Global Ratings today raised its issue-level rating on GCI LLC's senior unsecured debt to 'B+' from 'B' and revised the recovery rating to '4' from '5'. The '4' recovery rating indicates our expectation of average (30%-50%) recovery for lenders in the event of a payment default. The revision of our recovery rating reflects the company's pay-down of senior secured bank debt over the last 12 months and our expectation of continued debt repayment over the intermediate term. All other ratings on GCI, including the 'B+' issuer credit rating, are unaffected. RECOVERY ANALYSIS Key analytical factors: - Our simulated default scenario envisions a sharp decline in GCI's revenue and EBITDA due to lower oil prices, which contribute to a steep recession in Alaska, combined with increased competition in the wireless segment that leads to pricing pressure and continued subscriber losses. - We value the company on a going-concern basis using...
