S&P Global Ratings on Feb. 20 assigned Fusion Telecommunications International Inc. a B corporate credit rating.
The outlook is negative.
The rating agency also assigned its B issue-level rating to the company's proposed senior secured first-lien credit facilities, consisting of a $50 million revolving credit facility due 2023 and $500 million first-lien term loan due 2025. Also, S&P assigned its CCC+ issue-level rating to the company's proposed senior secured second-lien term loan due 2025.
The agency expects to resolve the CreditWatch placement of the corporate credit rating on Birch after Fusion's transaction to buy Birch's cloud and business services customers, operations and infrastructure closes. At that time, S&P expects to withdraw all ratings on Birch.
The negative outlook reflects potential integration risks related to the company's acquisition of Birch, along with uncertainty around Fusion's ability to operate a significantly larger business and lower the elevated customer churn associated with Birch's historical operations.
S&P Global Ratings and S&P Global Market Intelligence are owned by S&P Global Inc.