"Fitch Ratings has assigned a first time Long-Term Issuer Default Rating of 'B' to Windstream…"
https://www.fitchratings.com/research/corporate-finance/fitch-assigns-first-time-b-idr-to-windstream-services-outlook-stable-17-06-2021
Excerpts:
Revenue Pressures Continue: Windstream continues to experience pressure particularly in Enterprise segment due to declining legacy-products-related revenue and effects of competition. However, the strategic Enterprise revenue, comprised of SDWAN and UCaaS offerings, continues to grow in double digits and offset some of these underlying pressures. Fitch's base case assumes Enterprise revenue declines in high single digits in 2021 moderating to mid-single-digits by 2023 supported by growth in strategic revenue. Consumer revenues have grown over the past year, aided by sustained broadband customer growth over the past three years."
"High Strategic Execution Risk: Fitch believes there is a meaningful execution risk to the company's strategy to contain revenue declines and grow EBITDA over the next few years. While there are relatively low risk opportunities such as interconnection costs take-out that will support EBITDA, WIN's ability to gain residential market share through increased network investments will be a key driver for future revenue growth. In our view, Windstream has limited capacity to mitigate execution risks while still deleveraging."
"Cost Savings Support Margins: Windstream continues to optimize costs including realization of cost savings from interconnection expenses (i/c expenses) as it transitions away from legacy products. During 2020 and 2019, i/c expenses reduced averaging in mid-teens. WIN launched a three-year TDM exit plan in 2020 to migrate almost all its CLEC customers off of the TDM network to newer technologies. Fitch believes i/c cost savings along with additional identified cost saving opportunities will support EBITDA margins over the rating horizon."