Midcontinent Communications Rating On $300 Million Revolver Lowered To 'BB' From 'BB+'; Off Watch (Recovery Rating: '2')

NEW YORK (S&P Global Ratings) Aug. 20, 2019--S&P Global Ratings today lowered its issue-level rating on Midcontinent Communications' $300 million revolver due 2024 to 'BB' from 'BB+' and removed the ratings from CreditWatch, where we placed it with negative implications on July 17, 2019, as expected, following the completion of a previously announced refinancing. The lower rating reflects reduced recovery prospects in a simulated default because there are now more secured claims, as a new $685 million term loan replaced the old $385 million term loan. As a result, we have revised the recovery rating to '2' from '1', reflecting our expectation of substantial (70%-90%; rounded estimate: 75%) recovery in a default scenario. This action brings issue-level and recovery ratings

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