...- U.K. broadband provider TalkTalk Telecom Group Ltd. (TalkTalk) faces a large maturity wall in February 2025 when its senior bonds mature. - The company has entered an exclusivity agreement with a new equity partner for its wholesale platform PXC of about ú450 million, including a planned debt raise. Altogether, the proceeds of the transaction are sufficient to fully refinance TalkTalk's senior secured debt facilities. However, this plan remains subject to execution risk, and failure to close the transaction in a timely manner will put the company at risk of a liquidity shortfall or distressed exchange transaction over the next 12 months. - We anticipate TalkTalk will underperform its guidance and adjusted EBITDA margins will decline to 18% in fiscal year 2024 (ending Feb. 28, 2024) from 20% the previous year, partly contributing to continued significant cash burn after leases in fiscal year 2024. - We therefore lowered our long-term issuer credit rating on TalkTalk and our issue rating...
