Fitch rates Cincinnati Bell B

Fitch Ratings said it assigned Cincinnati Bell, Inc. (CBB) and its subsidiary Cincinnati Bell Telephone Co. LLC and B issuer default ratings and BB-/RR2 ratings to their senior secured loans and notes. The outlook is stable.

“Fitch expects CBB to generate FCF deficits averaging over $250 million annually through our forecast horizon due primarily to accelerating capex and related spending to fund its fiber rollout. While CBB is nearing completion of its fiber network in Cincinnati in 2023, Fitch believes the company's aggressive fiber deployment plans for Hawaii and Dayton will result in elevated capex spending to 2025. However, CBB has flexibility to alter the pace and extent of its build plan to support its cash flow needs,” the agency said in a press release.

Fitch noted it expects CBB to secure debt financing to fund its fiber build-out, which will push Fitch-adjusted EBITDA leverage to the mid-to-high 4x area in the agency’s four-year forecast from 4.1x in FY2022.

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