S&P Downgrades GCI, Citing Lost Rural Health Care Subsidies
S&P changed its outlook to “negative” for GCI Liberty following a weaker than expected Q1. Last fall, the FCC told GCI it would reduce its Rural Health Care payments from the USF for the 2017 funding year by 26 percent.…
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The carrier has appealed (see 1811130040). If the agency's decision stands, the same cost methodology will apply to the RHC funding in subsequent years, the telco said in a May 9 earnings report. S&P Wednesday downgraded to ‘B-‘ GCI’s issuer credit rating. The cable and telco provider didn't comment Thursday.