Fitch downgrades TierPoint to B

Fitch Ratings said it downgraded TierPoint, LLC’s issuer default rating to B from B+ and various issue ratings and revised the outlook to negative from stable.

The issuer default rating and security ratings affect about $1.1 billion of debt, including term loans and a $175 million revolver.

“Recent underperformance in TierPoint's business has led to a reset of Fitch's expectations. TierPoint's 2017 fundamentals meaningfully underperformed both internal projections and Fitch's prior forecast for the company,” the agency said in a news release.

“Fitch believes 2018 will be a reset year and that the company will need to improve internal execution and better integrate past acquisitions while also managing its cash burn and high leverage. Fitch believes TierPoint is aggressively focused on returning to double digit top-line growth while also stabilizing profitability.

“If the company is successful in executing on its outlined turnaround over the next 12-24 months, this could stabilize the rating in the B category.”

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