Moody's cut Windstream Holdings Inc. unit Windstream Services LLC's corporate family rating to B3 from B2, citing the company's "sustained weak operating trends and a challenging debt maturity profile."
The rating agency lowered Windstream Services' probability of default rating to B3-PD from B2-PD, its secured rating to B3 from B2 and its unsecured rating to Caa1 from B3. Windstream's speculative-grade liquidity rating remains at SGL-2, reflecting good liquidity.
The outlook remains negative due to Moody's expectation of continued pressure on EBITDA, negative free cash flow including persistent restructuring costs, and low asset coverage relative to debt, the agency said Feb. 28.
