S&P ups Cincinnati Bell

S&P said it upgraded Cincinnati Bell Inc.’s issuer rating to B from B- and assigned B+ issue-level and 2 recovery ratings to its new $150 million first-lien term loan due 2028. The 2 recovery rating indicates an expectation of substantial (70%-90%; rounded estimate: 70%) recovery in default.

Additionally, the agency said it raised the issue-level rating on Cincinnati Bell's senior unsecured debt to B+ from CCC+ as this debt will now be secured by the same security package as the company's first-lien debt.

“The upgrade reflects our expectation for improved operating and financial performance with adjusted leverage remaining comfortably below our 5.75x downgrade threshold this year. Despite risks to Cincinnati Bell's IT services and hardware segment because of the pandemic and U.S. recession in 2020, the company's performance exceeded our expectations,” S&P said in a press release.

The outlook is stable.

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