Research Update: Windstream Holdings Downgraded To 'CC' On Distressed Exchange; Ratings To Be Reevaluated Post-Exchange; Outlook Negative

U.S.-based telecommunications provider Windstream Holdings Inc. announced exchange offers to holders of its senior unsecured notes due 2021, 2022, 2023, and 2024, for new second-lien notes due 2025 at below par value. We are lowering our corporate credit rating on Windstream to 'CC' from 'B-'. We are also lowering our issue-level rating on wholly owned subsidiary Windstream Services LLC's senior unsecured debt subject to the below-par exchange to 'C' from 'CCC'. The negative rating outlook reflects the likelihood that we would lower the corporate credit rating to 'SD' (selective default) and the ratings on the affected issues to 'D' if the exchange is completed. Immediately following completion of the exchange, we would raise the corporate credit rating back to a

... Holdings Inc. announced exchange offers to holders of its senior unsecured notes due 2021, 2022, 2023, and 2024, for new second-lien notes due 2025 at below par value. + We are lowering our corporate credit rating on Windstream to '##' from 'B-'. + We are also lowering our issue-level rating on wholly owned subsidiary Windstream Services LLC's senior unsecured debt subject to the below-par exchange to 'C' from '###'. + The negative rating outlook reflects the likelihood that we would lower the corporate credit rating to '##' (selective default) and the ratings on the affected issues to 'D' if the exchange is completed. + Immediately following completion of the exchange, we would raise the corporate credit rating back to a level that reflected the pro forma capital structure and business prospects....

Research Update