Moody's Downgrades Windstream Rating, Sees Increased Default Risk
Moody's downgraded Windstream's corporate family rating Friday to Caa3 from Caa1 and its probability of default rating to Caa3-PD from Caa1-PD. Moody's cited a Feb. 15 federal court reversal Windstream suffered in a dispute with Aurelius Capital Management that awarded…
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the bondholder relief, including about $310 million (see 1902190043). "This legal outcome for Windstream [is] a negative that increases default risk and impairs refinancing actions that might have further strengthened its balance sheet in the intermediate term," Moody's said. "While the ongoing dispute remains unresolved, Windstream may encounter difficulties accessing funds to refinance its debt maturities, most notably the company's $1.03 billion drawn revolving credit facility expiring April 24, 2020 and $78 million unsecured notes maturing October 15, 2020." The telco didn't comment.