U.S.-based internet and cable TV provider Mega Broadband Investments Intermediate I LLC (doing business as Vyve Broadband) announced that it intends to add $100 million to its term loan, with proceeds earmarked to fund dividend to shareholders. The debt-financed dividend reflects a more aggressive financial policy, which was not factored into our previous base-case forecast and is inconsistent with a higher rating. Therefore, we revised our outlook on Vyve to stable from positive and affirmed our 'B+' issuer credit rating. In addition, we affirmed our 'B+' issue-level rating and '4' recovery rating on Vyve?s senior secured first-lien debt. The incremental debt modestly reduces recovery prospects for first-lien lenders to 40% from 45% under our hypothetical default scenario. The stable outlook
