Moody's affirmed the ratings for Uniti Group Inc, formerly Communications Sales and Leasing, including its B2 corporate family rating, B2-PD probability of default rating, B1 senior secured rating and Caa1 unsecured rating.
The agency has not changed the company's speculative grade liquidity rating of SGL-2, citing good liquidity and a stable outlook.
Moody's maintained the stable outlook for the company despite changing the outlook for Windstream Services LLC to negative. Uniti generates three-fourths of its revenues from its master lease with Windstream and the ratings of both companies remain firmly linked to each other.
The agency could raise Uniti's ratings in the event that leverage was sustained below 4x and the company achieved revenue diversification. On the other hand, the ratings could be downgraded if leverage were sustained above 6.5x or if there was any negative change in the credit profile of Windstream.