S&P downgrades Trilogy

Standard & Poor’s said it lowered the corporate credit rating on Trilogy International Partners LLC to CCC- from CCC.

The agency also said it lowered the rating on the company’s senior secured notes to C from CC due to the structurally subordinated position of the holding company’s debt to its subsidiaries.

The downgrade reflects Trilogy’s escalated refinancing risks and unsustainable capital structure in the next six months, along with a high probability of default if it is unable to refinance its senior secured bonds before August, S&P said.

The ratings also consider the company’s small scale amid a very competitive environment, some geographic diversity and margins below those of its peers, the agency said.

Partially offsetting factors include an expectation that the company will grow due to a larger subscriber base, S&P said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.