Jul. 7 at 9:01 PM
Moody's downgraded Cable One's Corporate Family Rating to B2 from B1 and revised its outlook to negative, citing a weaker-than-expected credit profile through 2028 following the Mega Broadband acquisition. The agency also cut the company's senior unsecured debt rating to Caa1 and placed its senior secured credit facilities under review.
Moody's expects continued pressure on Cable One's broadband business as customer growth and retention initiatives take longer to deliver results amid intensifying competition. The company's lower market valuation has also increased the cost of financing the remaining purchase of Mega Broadband.
Following GTCR's exercise of its put option, Cable One must acquire the remaining 55% of Mega Broadband by at least October 1, 2026, increasing debt by
$480 million to
$1.4 billion, depending on the outcome of its debt exchange offer. Residential data revenue fell 5.1% year over year in Q1 2026 as subscribers declined 6.1%.
$CABO