New York, September 03, 2014 -- Moody's Investors Service ("Moody's") has downgraded Frontier Communications Corporation's ("Frontier" or the company") Corporate Family Rating ("CFR") to Ba3 from Ba2 primarily as a result of the increased leverage from debt incurred to finance the $2 billion acquisition of AT&T's Connecticut wireline assets. As part of this rating action, Moody's has also lowered Frontier's Probability of Default Rating ("PDR") to Ba3-PD from Ba2-PD and assigned Ba3 ratings to each of the two tranches of senior unsecured notes issued today, which will be used to finance the acquisition. Additionally, Moody's has affirmed Frontier's SGL-1 speculative grade liquidity rating. This concludes Moody's review initiated on December 17, 2013. The outlook is stable.
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