Negative Outlook Seen for Frontier
Moody’s downgraded its outlook for Frontier Communications' below-investment grade debt rating to negative and cut it a notch to B1 due to “persistently weak fundamentals,” the credit ratings business said Monday. “The downgrade follows disappointing 3Q results, particularly within its…
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recently acquired California, Texas and Florida (CTF) markets,” Moody’s said. “The negative outlook reflects the risk that Frontier may not be able to reverse the unfavorable operating trends among its CTF markets and that EBITDA could continue to decline.” Wells Fargo last week downgraded Frontier for showing weak revenue in the new markets (see 1611020017). In April, Frontier acquired Verizon wireline assets in Florida, Texas and California but experienced a bumpy transition that’s still getting attention from state regulators and politicians (see 1610130059).