Moody’s downgrades GTT

Moody’s Investors Service said it downgraded GTT Communications, Inc.’s corporate family rating to B3 from B2 as well as the company’s probability of default rating to B3-PD from B2-PD, the rating on the company’s senior secured facilities to B3 from B2 and the rating on the company’s 2024 senior unsecured notes to Caa2 from Caa1. The agency also downgraded the company’s speculative grade liquidity rating to SGL-4 from SGL-2.

The ratings are on review for further downgrade.

The downgrades and review follow the company’s announcement it sees added material delays in the filing of its second-quarter financials, which may, if unresolved by debt holders, result in an imminent event of default, Moody’s said.

“The delay in filing the Q2 financials stems from material failures in the company’s internal control over financial reporting, which have led to accounting issues. These issues are a key driver of the current rating actions,” Moody’s said in a press release.

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