Moody’s cut debt ratings on $3 billion of debt securities issued ...
Moody’s cut debt ratings on $3 billion of debt securities issued by RCN Corp., citing company’s slower network construction pace, higher than expected capital costs, thinly spread management and past missteps in execution. Moody’s, which began reviewing RCN’s debt…
Sign up for a free preview to unlock the rest of this article
Timely, relevant coverage of court proceedings and agency rulings involving tariffs, classification, valuation, origin and antidumping and countervailing duties. Each day, Trade Law Daily subscribers receive a daily headline email, in-depth PDF edition and access to all relevant documents via our trade law source document library and website.
ratings 2 months ago, cut rating for $1 billion of senior secured bank credit facilities to B2 from B1. As result of RCN’s problems and its recently curtailed expansion plan, rating service said it believed that “a fundamental mismatch may exist between the company’s likely operating profile two years out… and the capital structure that remains in place today.” Moody’s warned that unless RCN’s operating performance improved dramatically or company received fresh equity infusion, cable- telco overbuilder “will deplete its still good-sized liquidity position prior to attaining a level of operations and sufficient assets to adequately support its large and growing debt burden.” Moody’s said its future outlook for all RCN debt ratings remained “negative,” although it said company could sell its dark fiber, cable systems in N.J. and stake in Mexican cable operator to raise cash and pare down debt.