S&PGR Dwngrades Goodman Ntwrks To ‘SD’ On Interest Pyment Miss

Press Release: S&PGR Dwngrades Goodman Ntwrks To ‘SD’ On Interest Pyment Miss

 
 
The following is a press release from Standard & Poor's: 
 
     -- U.S. telecom infrastructure services provider Goodman Networks Inc. 
did not make the interest payment on its 12.125% senior secured notes and has 
engaged its creditors in potential restructuring options. 
     -- We believe there is a high likelihood that the company will not make 
the interest payment in full within the 30-day grace period permitted under 
the indenture agreement. 
     -- We are lowering our corporate credit rating to 'SD' (selective 
default) from 'CCC+'. 
     -- We are also lowering the issue-level rating on the company's senior 
secured notes to 'D'. 
 
NEW YORK (S&P Global Ratings) July 7, 2016--S&P Global Ratings today said it 
lowered its corporate credit rating on Goodman Networks Inc. to 'SD' from 
'CCC+'. 
 
We also lowered our issue-level rating on the company's senior secured notes 
to 'D' from 'CCC+'. The '4' recovery rating indicates our expectation for 
average recovery (30%-50%) of principal in the event of a payment default. We 
revised our expectation for recovery to the lower half of the range from the 
upper half. 
 
"The rating action follows Goodman's election to not make its interest payment 
on its senior secured notes and to enter into a 30-day grace period while it 
continues to negotiate a debt restructuring with its lenders," said S&P Global 
Ratings credit analyst Scott Tan. 
 
Technically, a payment default has not yet occurred under the indenture 
governing the notes, which provides a 30-day grace period. However, we believe 
there is a high likelihood that the company will not make the interest payment 
in full within the stated grace period given that the company is in 
negotiations with lenders to restructure this debt. 
 
RELATED CRITERIA AND RESEARCH 
 
Related Criteria 
     -- Methodology And Assumptions: Liquidity Descriptors For Global 
Corporate Issuers, Dec. 16, 2014 
     -- Revised Revolver Usage Assumptions For Recovery Analysis In Corporate 
Ratings, Nov. 20, 2014 
     -- Key Credit Factors For The Telecommunications And Cable Industry, June 
22, 2014 
     -- Corporate Methodology, Nov. 19, 2013 
     -- Corporate Methodology: Ratios And Adjustments, Nov. 19, 2013 
     -- Methodology: Industry Risk, Nov. 19, 2013 
     -- Country Risk Assessment Methodology And Assumptions, Nov. 19, 2013 
     -- Group Rating Methodology, Nov. 19, 2013 
     -- Timeliness Of Payments: Grace Periods, Guarantees, And Use Of 'D' And 
'SD' Ratings, Oct. 24, 2013 
     -- Methodology For Linking Short-Term And Long-Term Ratings For 
Corporate, Insurance, And Sovereign Issuers, May 7, 2013 
     -- Management And Governance Credit Factors For Corporate Entities And 
Insurers, Nov. 13, 2012 
     -- Criteria For Assigning 'CCC+', 'CCC', 'CCC-', And 'CC' Ratings, Oct. 
1, 2012 
     -- Use Of CreditWatch And Outlooks, Sept. 14, 2009 
     -- Criteria Guidelines For Recovery Ratings On Global Industrials 
Issuers' Speculative-Grade Debt, Aug. 10, 2009 
     -- 2008 Corporate Criteria: Rating Each Issue, April 15, 2008 
 
Certain terms used in this report, particularly certain adjectives used to 
express our view on rating relevant factors, have specific meanings ascribed 
to them in our criteria, and should therefore be read in conjunction with such 
criteria. Please see Ratings Criteria at www.standardandpoors.com for further 
information. Complete ratings information is available to subscribers of 
RatingsDirect at www.globalcreditportal.com and at www.spcapitaliq.com. All 
ratings affected by this rating action can be found on the S&P Global Ratings 
public website at www.standardandpoors.com. Use the Ratings search box located 
in the left column. 
 
Primary Credit Analyst: Scott B Tan, CFA, New York 212-438-4162; 
                        scott.tan[a]spglobal.com 
Secondary Contact: Latisha Kimber, New York 212 438 1021; 
                   latisha.kimber[a]spglobal.com 
 
 
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