Research Update: GCI LLC Upgraded To 'B' From 'B-' On Better-Than-Expected Credit Metrics; Outlook Stable

U.S.-based wireless and cable provider GCI LLC's earnings growth outperformed S&P Global Ratings' previous forecast primarily due to strong growth in broadband revenue driven by subscriber gains. We are raising the issuer credit rating on GCI to 'B' from 'B-' and removing it from CreditWatch, where we placed it with positive implications on Sept. 14, 2020. We are also raising the rating on GCI's secured debt to 'BB-' from 'B+'. The recovery rating is unchanged at '1'. In addition, we are lowering the rating on GCI's unsecured debt to a 'B-' from a 'B' and revising the recovery rating to '5' from '2' due to the recent reallocation of Charter equity assets from GCI to another Liberty Broadband subsidiary. The

...- U.S.-based wireless and cable provider GCI LLC's earnings growth outperformed S&P Global Ratings' previous forecast primarily due to strong growth in broadband revenue driven by subscriber gains. - We are raising the issuer credit rating on GCI to 'B' from 'B-' and removing it from CreditWatch, where we placed it with positive implications on Sept. 14, 2020. - We are also raising the rating on GCI's secured debt to '##-' from 'B+'. The recovery rating is unchanged at '1'. - In addition, we are lowering the rating on GCI's unsecured debt to a 'B-' from a 'B' and revising the recovery rating to '5' from '2' due to the recent reallocation of Charter equity assets from GCI to another Liberty Broadband subsidiary. The '5' recovery rating indicates our expectation for modest (10%-30%) recovery in the event of payment default. - The stable outlook on GCI is based on our expectation that the company's leverage will decline modestly to the low-4x area in 2021 from low-single-digit-percent EBITDA...

Research Update