Fitch trims TalkTalk

Fitch Ratings said it downgraded TalkTalk Telecom Group plc's long-term issuer default rating to B+ from BB-, downgraded the instrument rating to B+/RR4 from BB-/RR4 and reclassified the instrument to senior secured from senior unsecured.

“The downgrade reflects the attrition in TalkTalk's customer base, weak revenue trends and our expectations that financial leverage will remain higher than the BB- downgrade threshold for several years. The rating case envisages funds from operations (FFO) net financial leverage peaking at 5.0x in the financial year ending February 2022 and only falling below 4.5x (the downgrade threshold at B+/B) by FY24,” Fitch said in a press release.

The outlook is negative.

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