Research Update: Cable One Inc. Outlook Revised To Negative From Stable; 'BB' Rating Affirmed

U.S. cable operator Cable One Inc.'s operating metrics were weaker than expected in the second quarter of 2024, resulting in an 11% EBITDA decline and increase of S&P Global Ratings-adjusted debt to annualized EBITDA to 4.1x. We believe Cable One's business prospects have deteriorated due to increasing competition from fiber-to-the home (FTTH) and fixed wireless access (FWA) providers. As a result, we revised our downgrade threshold for the rating to 4x from 4.25x. We also revised our outlook to negative from stable and affirmed all the ratings, including the 'BB' issuer credit rating. The negative outlook reflects the potential that leverage could rise above 4x in the next 12 months due to lower earnings, leaving Cable One no capacity in

...- U.S. cable operator Cable One Inc.'s operating metrics were weaker than expected in the second quarter of 2024, resulting in an 11% EBITDA decline and increase of S&P Global Ratings-adjusted debt to annualized EBITDA to 4.1x. - We believe Cable One's business prospects have deteriorated due to increasing competition from fiber-to-the home (FTTH) and fixed wireless access (FWA) providers. As a result, we revised our downgrade threshold for the rating to 4x from 4.25x. - We also revised our outlook to negative from stable and affirmed all the ratings, including the '##' issuer credit rating. - The negative outlook reflects the potential that leverage could rise above 4x in the next 12 months due to lower earnings, leaving Cable One no capacity in the rating to debt finance an acquisition of the remaining stake of Mega Broadband Investments Intermediate I LLC (Vyve Broadband) that it does not own....

Research Update