Fitch Ratings on May 30 downgraded Frontier Communications Corp.'s issuer default rating to B+ from BB-.
The ratings action was due to the company's lower-than-expected EBITDA caused by Frontier's ongoing weak revenue and subscriber trends, which, along with the company's low free cash flow generation, have slowed Frontier's deleveraging.
The rating agency expects Frontier to refinance its upcoming maturities until its free cash flow levels improve, expecting gross leverage of 4.7x at the end of 2018. Fitch expects Frontier to start making more progress in deleveraging in 2020.
The agency revised Frontier's outlook to stable from negative.