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Fitch rates Frontier notes BB
Fitch Ratings said it assigned a BB rating with recovery rating of RR1 to Frontier Communications Corp.'s proposed $1.65 billion first-lien senior secured notes due 2027.
The proceeds will be used to repay in its entirety the outstanding borrowings on its term loan A facility, which is due in 2021, along with its ACB facility, which is due in 2021.
The proceeds will be used to pay related fees and expenses, Fitch said.
Following the close of the transaction, Frontier is expected to amend its credit agreement to extend the maturity of at least $835 million of the $850 million revolver from February 2022 to February 2024, the agency said.
The maturity of revolver commitments not extended will remain due in February 2022, Fitch noted.
Frontier's long-term issuer default rating is B and the outlook is stable.
The ratings reflect the base case forecast that incorporates a challenging operating environment for wireline operators, Fitch said.
The stable outlook considers expectations for improving – but still negative – revenue trends in 2019, the agency said.
Fitch said it expects modest improvements in the rate of decline in revenue in 2020 and thereafter.
The stable outlook also considers the lower churn and successful cost control efforts, the agency said.
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