Moody's on Aug. 12 downgraded Frontier Communications Corp.'s corporate family rating to Caa2 from Caa1 and probability of default rating to Caa3-PD from Caa1-PD.

The outlook on the company is negative.

The downgrade reflects Frontier's declining revenue and EBITDA as a result of secular and competitive pressures, among other factors, according to the rating agency.

Moody's noted that the potential for distressed debt exchanges in the next year or so is elevated based on operating results and other developments, including new board appointments with restructuring and bankruptcy experience.

The rating agency expects Frontier to maintain adequate liquidity over the next 12 months.