Moody's lowers Liberty PR

Moody's Ratings said it downgraded Liberty Communications PR Holding LP's ratings, including its corporate family rating and probability of default rating to B2 from B1 and to B2-PD from B1-PD, respectively. At the same time, the agency lowered LCPR Senior Secured Financing DAC’s backed senior secured and senior secured notes to B2 from B1 and LCPR Loan Financing LLC’s backed senior secured bank credit facility to B2 from B1.

“The rating action reflects higher than expected leverage (adjusted debt/EBITDA, including Moody's adjustments) that has remained above 5x since December 2022 and that Moody's estimates will peak at 5.7x as of December 2023. Moody's expects the company to improve profitability only in the second half of 2024 after the company completes the integration of AT&T Inc.'s (AT&T, Baa2 stable) operations in Puerto Rico and the U.S. Virgin Islands.

“The completion of this integration will bring significant cost reductions; nonetheless, leverage will remain above 5x through 2025, which Moody's considers as more appropriately reflected in a B2 rating,” the agency said in a press release.

The outlook remains stable.

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