Research Update: Windstream Holdings Inc. Ratings Lowered Following Ruling On Breach Of Sale And Leaseback Covenant; Outlook Negative

A judge for the Southern District of New York ruled that U.S. telecommunications provider Windstream Holdings Inc. subsidiary Windstream Services LLC breached the indenture governing its 6.375% senior notes due 2023 through the spin-off of a portion of its fiber and copper plant to Uniti Group Inc. in 2015. We are lowering the issuer credit rating on Windstream, Windstream Georgia Communications Corp., and Windstream Holding of the Midwest Inc. to 'CCC-' from 'CCC+' based on heightened risk of default following the court ruling. We are also lowering the issue-level ratings on the first-lien debt of subsidiaries Windstream Services LLC and Windstream Holdings of the Midwest Inc. to 'CCC+' from 'B'. In addition, we are lowering the issue-level ratings on Windstream's

...+ A judge for the Southern District of New York ruled that U.S. telecommunications provider Windstream Holdings Inc. subsidiary Windstream Services LLC breached the indenture governing its 6.375% senior notes due 2023 through the spin-off of a portion of its fiber and copper plant to Uniti Group Inc. in 2015. + We are lowering the issuer credit rating on Windstream, Windstream Georgia Communications Corp., and Windstream Holding of the Midwest Inc. to '###-' from '###+' based on heightened risk of default following the court ruling. + We are also lowering the issue-level ratings on the first-lien debt of subsidiaries Windstream Services LLC and Windstream Holdings of the Midwest Inc. to '###+' from 'B'. + In addition, we are lowering the issue-level ratings on Windstream's second-lien notes to '##' from '###' and its senior unsecured notes to 'C' from '###-'. We could lower the issue-level rating on the 6.375% senior notes due 2023 to 'D' over the medium term depending on the outcome of...

Research Update