waltermasoni
Caribbean Trader
Altice USA Inc. Rating Raised To 'BB-' From 'B+'; Debt Ratings Raised; Outlook Stable
- 25-Feb-2019 17:58 EST
- Altice USA Inc. has steadily increased earnings through revenue growth
and significantly improved profit margins, resulting in debt to EBITDA of
5.3x for the last 12 months ended Dec. 31, 2018, compared with our
upgrade trigger of 5.5x for a 'BB-' rating. - At the same time, the company's subscriber metrics are relatively stable
since Altice implemented its cost-cutting initiatives, with investments
in place to help preserve and possibly increase market share. - Therefore, we are raising all ratings on Alice by one notch, including
the issuer credit rating to 'BB-' from 'B+', reflecting strong
operational performance, prudent capital investments, and a more
conservative financial policy following the spinoff from Altice N.V. in
2018. - The stable outlook reflects our belief that while the company can
deleverage further, it will engage in shareholder rewards or mergers and
acquisitions such that debt to EBITDA remains around 5x over the next 2-3
years.