WideOpenWest, Inc. Announces Upgrade in Credit Rating from B to BB- and B2 to B1; Outlook is Stable

Rhea-AI Summary

WOW! Internet, Cable & Phone (NYSE: WOW) has received a credit rating upgrade to BB- from S&P Global and B1 from Moody's Investors Service. This upgrade is attributed to the company using proceeds from the divestiture of service areas, with a total of $1.8 billion raised from key sales, to pay down debt. The latest sale, finalized on November 1, 2021, included Chicago, Evansville, and Maryland areas for $661 million. The stable outlook from both agencies suggests WOW! will have financial flexibility for expansion and growth.

Positive

• Credit rating upgraded to BB- by S&P and B1 by Moody's, reflecting improved financial health.
• Raised $1.8 billion from service area divestitures, significantly reducing debt.
• Stable outlook indicates financial flexibility for expansion and subscriber growth.

Negative

• None.

ENGLEWOOD, Colo., Dec. 2, 2021 /PRNewswire/ -- WOW! Internet, Cable & Phone (NYSE: WOW), a leading broadband provider in the United States, today announced the company's credit rating has been upgraded to BB- by S&P Global and B1 by Moody's Investors Service, respectively. The upgrades, which are forward looking evaluations of a company's credit risk, are primarily a result of WOW! using its net proceeds from the divestiture of several of its service areas earlier this year to pay down its existing debt.

On November 1, 2021, WOW! announced the completion of the sale of its Chicago, Evansville, Indiana, and Anne Arundel, Maryland service areas to Radiate HoldCo, LLC, a telecommunications holding company affiliated with RCN Telecom Services, LLC, Grande Communications Networks, LLC and WaveDivision Holdings, LLC (collectively "Astound Broadband") for $661 million. The completion of the Astound Broadband transaction follows WOW!'s completed sale of its Cleveland and Columbus, Ohio service areas to Atlantic Broadband, announced in September 2021. Combined, the two transactions have generated gross proceeds of $1.8 billion, enabling WOW! to significantly lower its debt, strengthen the company's financial position and accelerate its broadband-first strategy.

"We appreciate the recognition by both Moody's and S&P of WOW!'s efforts to delever the business and continue to execute its broadband first strategy," said John Rego, WOW!'s CFO.

The stable outlook outlined by S&P Global and Moody's indicates additional financial flexibility from WOW! to further expand its service area footprint and support further broadband subscriber growth.

About WOW! Internet, Cable & Phone
WOW! is one of the nation's leading broadband providers, with an efficient, high-performing network that passes 1.9 million residential, business and wholesale consumers. WOW! provides services in 14 markets, primarily in the Midwest and Southeast, including Michigan, Alabama, Tennessee, South Carolina, Florida and Georgia. With an expansive portfolio of advanced services, including high-speed Internet services, cable TV, phone, business data, voice, and cloud services, the company is dedicated to providing outstanding service at affordable prices. WOW! also serves as a leader in exceptional human resources practices, having been recognized eight times by the National Association for Business Resources as a Best & Brightest Company to Work For, winning the award for the last four consecutive years. Visit wowway.com for more information.

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SOURCE WideOpenWest, Inc.

FAQ

What is the recent credit rating upgrade for WOW?

WOW! Internet, Cable & Phone's credit rating has been upgraded to BB- by S&P Global and B1 by Moody's Investors Service.

How much did WOW raise from service area sales?

WOW raised a total of $1.8 billion from the sale of its service areas.

What areas did WOW sell recently?

WOW recently sold service areas in Chicago, Evansville, and Anne Arundel, Maryland, for $661 million.

What does the stable outlook mean for WOW's future?

The stable outlook from credit rating agencies indicates that WOW has financial flexibility to expand its services and grow subscriber numbers.