CHICAGO--(BUSINESS WIRE)--According to Fitch Ratings' 'Telecommunications and Cable Stats Quarterly - Fourth Quarter 2010' published today, favorable market conditions for much of 2010 enabled issuers to amend credit facilities, extend maturities, issue new debt, and pursue growth opportunities via acquisitions.
Fitch expects that issuers will continue to capitalize on the currently favorable market conditions, as this activity has generally strengthened liquidity positions and increased issuers' financial flexibility. In light of improved overall liquidity positions and market access, Fitch expects that free cash flow will continue to be increasingly redistributed towards equity holders primarily in the form of share repurchases and dividends, which increased 23% in 2010 from the previous year. Fitch expects modest improvements in EBITDA margins of 30 bps in 2011 driven by expense synergies through sector consolidation, resulting in median debt-to-EBITDA leverage declining by 20 bps.
Fitch's report provides a summary of four years of operating performance, credit metrics, and liquidity positions of the companies in this sector of Fitch's rating universe over the past four years, as well as key credit strengths and concerns as of the end of 4Q'10.
This report is available on the Fitch web site at 'www.fitchratings.com'.
Additional information is available at 'www.fitchratings.com'.
Applicable Criteria and Related Research: Telecommunications and Cable
Stats Quarterly - Fourth-Quarter 2010
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=616645
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