This site uses cookies to provide you with a great user experience. By using BondbloX, you accept our use of cookies.
Frontier Communications (Frontier) and its subsidiaries have been downgraded by a notch from BB- to B+ by Fitch. Fitch also has a negative outlook on all the entities. The rating downgrade and negative outlook results from Fitch expectations that Frontier will require additional capital raises due to continued fiber expansion in the next few years resulting in high financial leverage and negative free cash flows for the company. Fitch expects free cash flow deficits will continue in the next few years and make the company reliant on capital markets. Frontier’s financial leverage increased materially in 2022-2023 due to heavy capital spending in deploying fiber networks in order to achieve its target goal of expanding fiber network to 10mn locations by FY 2025.
Frontier’s bonds traded stable with its 8.75% 2030s at 102.3 cents on the dollar, yielding 8.3%