On May 9, 2019, telecommunications equipment and components provider CommScope Holding Co Inc. announced weak earnings for ARRIS International and weak guidance for the combined company next quarter. We are placing our ratings on the company on CreditWatch with negative implications, including the 'BB-' issuer credit rating. We think this weak performance could preclude the company from reducing leverage to less than 5x within the next 12 to 24 months, which is required to support the 'BB-' rating. The CreditWatch action follows CommScope's announcement that ARRIS' revenue fell 12.4% from the prior year, and that EBITDA fell 58.9% to $85.9 million, due to a reduction in capital spending by certain large North American network operators, a channel inventory draw-down, and
