Telcos, Cable in for 'Tumultuous Year' Despite Policy Upside, S&P Global Ratings Says
S&P Global Ratings sees telecom and cable providers facing market challenges, as 2017 is poised to be "another tumultuous year" despite potential policy gains under President Donald Trump. "We believe the Trump administration's regulatory agenda is likely to be more…
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favorable to U.S. telecom and cable companies than the previous one," said S&P Global Ratings credit analyst Allyn Arden in a release on a report issued Tuesday. "Despite the potential for tax reform and a more benign regulatory environment, we anticipate that intense competition, elevated leverage, and the likelihood of more M&A activity could pressure ratings on U.S. telecom and cable companies." S&P said cable is "better positioned since it owns a superior product and is increasing penetration in the business segment," while wireless and wireline carriers "have stretched balance sheets and aggressive financial policies that could ultimately hurt ratings as industry competition intensifies."