...June 3, 2019 NEW YORK (S&P Global Ratings) June 3, 2019--S&P Global Ratings today assigned its 'B' issue-level rating and '2' (capped) recovery rating to Alaska-based diversified telecommunications provider GCI LLC's $300 million of senior unsecured notes due in 2024. The '2' recovery rating indicates our expectation of substantial (70%-90%; rounded estimate: 85%) recovery in the event of a payment default. Proceeds together with cash on hand will fund the redemption of the company's existing $325 million of 6.75% notes due in 2021. These notes are currently callable at 101.125. Our 'B-' issuer credit rating on GCI is unaffected because the transaction, for all intents and purposes, is leverage neutral. ISSUE RATINGS ¡ RECOVERY ANALYSIS Key analytical factors - Our simulated default scenario envisions decreased revenue and EBITDA due to lower oil prices, which could continue to hurt the Alaskan economy, combined with increased competition in the wireless segment from Verizon and AT&T, which...
