S&P downgrades Fusion Connect

S&P said it lowered the ratings on Fusion Connect Inc., including the issuer credit rating to D (default).

Fusion Connect elected not to pay about $7 million in aggregate principal due April 1 on its first-lien term loans, S&P said.

The downgrades follow news of the missed payment, which constitutes an event of default under the agency's criteria, S&P said.

S&P said it no longer expects Fusion to pay its debts as they come due based on the company's weak liquidity and plans to seek forbearance through a restructuring of its debt obligations.

If unsuccessful, that could result in the company filing for Ch. 11 bankruptcy protection, the agency said.

S&P said it expects to discontinue the D ratings on the company once 30 days have elapsed, absent new information that would prompt a reassessment.

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