fabriziof
Forumer storico
diciamo pure 3
Quale avete?
Obbligazioni societarie HIGH YIELD e oltre, verso frontiere inesplorate - Vol. 1
- Creatore Discussione TRADING_IDEAS
- Data di Inizio
- Stato
Quale avete?
sparviero7000
Forumer storico
USG3980PAD71 quotata sul lux
zoro-aster
Forumer storico
usg3980pad71
usg3980pad71
Ultima modifica:
Myskin
Forumer stoico
Anche la mia lista di 'malati' si allunga: General Shopping, Bombardier e FMG
Non vendo nulla e aspetto che passi 'a nuttata.
E non parliamo del venezuela
li si che sono bene esposto...per lenire le pene mi sono concesso una vacanza lunghissima, si cedola e magari si fanno meno danni 
fabriziof
Forumer storico
E non parliamo del venezuela
In questi giorni ho fatto fuori un terzo di venezuela ,ne avevo un enormità ,ma oggi mi sono concesso un assaggio di pdvsa 2024 a 33,5
Myskin
Forumer stoico
Questa non mi sembra affatto male
Related Issuers
Frontier Communications Corporation
New Communications Holdings Inc.
Related Research
The document is not a part of your current subscription. Credit Opinion: Frontier Communications Corporation
The document is not a part of your current subscription. Covenant Quality Assessment: Frontier Communications Corporation - Post-Sale Snapshot - $775m 6.250% Senior Notes due 2021 $775m 6.875% Senior Notes due 2025
The document is not a part of your current subscription. Covenant Quality Assessment: Frontier Communications Corporation - Pre-Sale Snapshot - $775m _% Senior Notes due 2021 - $775m _% Senior Notes due 2024
Rating Action: Moody's downgrades Frontier to Ba3
Rating Action: Moody's places Frontier's Ba2 corporate family rating on review for downgrade
Rating Action: Moody's affirms Frontier's Ba3 corporate family rating following acquisition announcement
Global Credit Research - 05 Feb 2015
New York, February 05, 2015 -- Moody's Investors Service ("Moody's") has affirmed Frontier Communications Corporation's ("Frontier" or the company") Ba3 Corporate Family Rating ("CFR") and Ba3-PD Probability of Default Rating ("PDR") following the company's announcement that it has agreed to acquire Verizon Communications, Inc's ("Verizon") local wireline assets in the states of Florida, Texas and California. Frontier will pay approximately $10.5 billion for the former GTE wireline operations. Moody's expects Frontier's free cash flow profile to meaningfully improve following this transaction. Moody's exects that leverage will rise temporarily, but fall back towards 4x (Moody's adjusted) over a two year period following deal close. As part of this rating action, Moody's has also affirmed Frontier's SGL-1 speculative grade liquidity rating and the Ba3 ratings on the existing senior unsecured notes. The outlook remains stable.
Affirmations:
..Issuer: Frontier Communications Corporation
.... Corporate Family Rating (Local Currency), Affirmed Ba3
.... Probability of Default Rating, Affirmed Ba3-PD
.... Speculative Grade Liquidity Rating, Affirmed SGL-1
....Senior Unsecured Notes, Affirmed Ba3, LGD4
....Senior Unsecured Shelf, Affirmed (P)Ba3
Outlook Actions:
..Issuer: Frontier Communications Corporation
....Outlook, Remains Stable
..Issuer: New Communications Holdings Inc.
....Senior Unsecured Notes, Affirmed Ba3, LGD4
RATINGS RATIONALE
Frontier's Ba3 CFR reflects its large scale of operations, its strong and predictable cash flows and high margins. With this transaction, Frontier will dramatically improve its scale and acquire valuable assets that are strongly positioned versus the incumbent cable competitors. The acquisition of the former GTE properties from Verizon and the recent purchase of AT&T's Connecticut assets will improve Frontier's asset base and increase its triple-play (i.e. internet, video and voice) product capabilities. These factors are offset by the company's challenged competitive position versus cable operators in its legacy Frontier territories, its weak revenue trend and the possibility that the company may not have the discipline to continue to adequately invest in network modernization. However, following this transaction, the legacy Frontier properties will represent approximately one-third of the pro forma company's total footprint. Further, the cash flow increase from the acquired assets will dramatically improve Frontier's financial flexibility to invest into the network.
Moody's projects Frontier's leverage to be around 4.1x (Moody's adjusted) at year end 2017 before falling modestly in 2018 assuming debt repayment from operating cash flows. Moody's anticipates around one-quarter of the transaction's purchase price will be funded with capital which meets Moody's criteria as permanent equity capital. If the final financing mix is materially different, this could put pressure on Frontier's ratings.
The acquisition will double Frontier's size to over $11 billion in revenues, adding nearly 6.1 million additional households and about 2.2 million additional broadband connections. Moody's expects Frontier's consolidated revenue over the next several years to remain approximately flat as the growth within the acquired Verizon wireline properties offsets the low single digit percentage decline at the legacy Frontier business. The Verizon acquisition is positive to Frontier's cash flow profile given the high margins of the acquired wireline business and the high penetration of FiOS within the footprint resulting in favorable capital intensity.
Moody's believes that the acquisition will not result in high execution risk. Frontier has the experience and capabilities to successfully integrate the acquired assets and Frontier's familiarity with the Verizon assets from its 2010 acquisition further reduces the level of execution risk.
Lastly, Frontier has already assembled an integration team for the Connecticut transaction, which can be redeployed for the Verizon integration activity. Nevertheless, the implementation of two large transactions in such a tight timeframe will consume management's full attention for the next few years.
The ratings for the debt instruments reflect both the probability of default of Frontier, on which Moody's maintains a PDR of Ba3-PD, and individual loss given default assessments. Moody's currently rates Frontier's senior unsecured debt at Ba3 (LGD4), in line with the corporate family rating as the unsecured debt represents the vast majority of the Company's debt obligations. If the company uses a material amount of secured debt in the final financing structure, this could impact the notching of the debt instruments versus the Ba3 family rating.
The stable outlook is based upon Moody's view that Frontier will successfully integrate the acquired assets, maintain stable margins and produce free cash flow after dividends of about 2-3% of total debt. The outlook also assumes that Frontier will repay debt at maturity with operating cash flows for the next two to three years.
Moody's could raise Frontier's ratings if leverage were to be sustained comfortably below 3.75x Moody's adjusted) and free cash flow to debt were in the mid single digits percentage range. Moody's could lower Frontier's ratings if leverage were to exceed 4.25x (Moody's adjusted) or free cash flow turns negative, on a sustained basis. Also, the ratings could be lowered if the company's liquidity becomes strained or if capital spending is reduced below the level required to sustain the company's market position.
Frontier Communications Company ("Frontier" or the "Company") is an Incumbent Local Exchange Carrier ("ILEC") headquartered in Stamford, CT. For the last twelve month ended September 30, 2014, the company generated $4.6 billion of revenue.
The principal methodology used in these ratings was Global Telecommunications Industry published in December 2010. Other methodologies used include Loss Given Default for Speculative-Grade Non-Financial Companies in the U.S., Canada and EMEA published in June 2009. Please see the Credit Policy page on www.moodys.com for a copy of these methodologies.
Myskin
Forumer stoico
In questi giorni ho fatto fuori un terzo di venezuela ,ne avevo un enormità ,ma oggi mi sono concesso un assaggio di pdvsa 2024 a 33,5
Purtroppo a quei bonds non so resistere
fabriziof
Forumer storico
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HIGH YIELD e oltre, verso frontiere inesplorate, vol.3
