|[December 19, 2013]
Fitch Releases 3Q'13 U.S. Telecom & Cable Stats Quarterly Report
CHICAGO --(Business Wire)--
According to a new report issued today by Fitch Ratings, acquisitions
totaled $20 billion during third-quarter 2013 (3Q'13), heavily
influenced by the closing of Sprint (News - Alert) Corporation's (Sprint) merger with
SoftBank Corp. and the acquisition of Clearwire Corporation. Merger and
acquisition (M&A) activity continued into the fourth quarter as
highlighted by Frontier Communications Corp.'s recent announcement that
it has entered into a definitive agreement to acquire AT&T Inc.'s
wireline operations in Connecticut for $2 billion. As a result of
heightened M&A within the industry, few significant opportunities exist
for further consolidation. There has been speculation that Sprint is
interested in acquiring T-Mobile (News - Alert) US, Inc. However, Fitch does not expect
this to materialize in the near term as uncertainty as to regulatory
approval and spectrum incompatibility persists.
As companies pursue M&A activity and prepare for the upcoming wireless
spectrum auctions, aggregate leverage increased during 3Q'13 to 2.9x
from 2.4x the previous year. American Tower (News - Alert) Corporation's leverage
increased to 6.3x from 4.6x following the $4.8 billion acquisition in
October of MIP Tower Holdings LLC. Verizon Communications Inc. also
witnessed leverage increase a full turn to 2.4x after the company issued
$49 billion of debt to fund its proposed $130 billion acquisition of
Vodafone (News - Alert) Group, PLC's 45% interest in Verizon Wireless. Fitch
anticipates aggregate leverage will continue to increase slightly into
2014 as total debt levels outpace EBITDA growth.
Fitch's 'U.S. Telecom and Cable Stats uarterly' provides a summary of
operating performance, credit metrics, and liquidity positions of the
companies in the telecommunications sector of Fitch's rating universe
over the past four years, as well as key credit strengths and concerns
as of the end of 3Q'13.
The full report 'U.S. Telecom & Cable Stats Quarterly - Third-Quarter
2013' is available at 'www.fitchratings.com'
or by clicking on the link.
Additional information is available at 'www.fitchratings.com'.
Applicable Criteria and Related Research: U.S. Telecom and Cable Stats
Quarterly (Third-Quarter 2013)
ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND
DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING
THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS.
AVAILABLE ON (News - Alert) THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'.
PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS
SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS
OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES
AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF
THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE
RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR
RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY
CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH
[ InfoTech Spotlight's Homepage ]