Research Update: Comcast Corp. Ratings Affirmed Despite Tightened Leverage Thresholds, Outlook Stable

Comcast Corp. faces increased competition and rising secular pressures across all of its three major businesses, most notably in its maturing domestic broadband business where it is dealing with the expanding penetration of both fixed wireless access (FWA) and fiber to the home (FTTH). S&P Global Ratings tightened its leverage downgrade threshold for the current rating by 0.25x to 2.75x because the company's domestic broadband competition is more intense than we previously envisioned. Our leverage upgrade threshold for the current rating remains unchanged at 2.0x. Nonetheless, we expect the company, which had S&P Global Ratings-adjusted leverage of 2.5x as of March 31, 2024, will maintain leverage within this range. We affirmed all of our ratings on Comcast, including the 'A-'

...- Comcast Corp. faces increased competition and rising secular pressures across all of its three major businesses, most notably in its maturing domestic broadband business where it is dealing with the expanding penetration of both fixed wireless access (FWA) and fiber to the home (FTTH). - S&P Global Ratings tightened its leverage downgrade threshold for the current rating by 0.25x to 2.75x because the company's domestic broadband competition is more intense than we previously envisioned. Our leverage upgrade threshold for the current rating remains unchanged at 2.0x. Nonetheless, we expect the company, which had S&P Global Ratings-adjusted leverage of 2.5x as of March 31, 2024, will maintain leverage within this range. - We affirmed all of our ratings on Comcast, including the 'A-' long-term issuer credit rating. - The stable outlook incorporates our expectation that the company will easily manage its current shareholder return plans while maintaining leverage within our expected range...

Research Update