Fitch Ratings announced an upgrade of Uniti Group LP's, Uniti Fiber Holdings Inc.'s, and Uniti Group, Inc.'s senior unsecured ratings to 'B' with a Rating Recovery of 'RR5', from the previous 'B-'/'RR6'. The 'B+' Issuer Default Rating (IDR) and Rating Watch Negative (RWN) for all ratings remain in place.
This upgrade is attributed to the resolution of an identified error in Fitch's recovery analysis tool, which followed the recent co-issuance of $600 million in unsecured notes and the corresponding repayment of $500 million of the company's 10.5% senior secured notes. The correction resulted in an increased recovery for the unsecured debts under Fitch's recovery waterfall.
The improved rating reflects enhanced recovery prospects for Uniti's unsecured debt, indicating a more favorable position for these creditors. This development is a positive signal regarding the company's financial health and its efforts to optimize its capital structure.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.