Fitch cuts Liberty Communications of Puerto Rico to CC

On August 20, 2026, Fitch Ratings cuts the long-term issuer rating of Liberty Communications of Puerto Rico LLC from CCC to CC. It also cuts the ratings of LCPR Loan Financing LLC's 2028 term loan and of LCPR Senior Secured Financing Designated Activity Company's 2027 and 2029 senior secured notes to CCC- with Recovery Rating RR3, from CCC+/RR3. The downgrades, Fitch writes from São Paulo, reflect that a default of some kind appears probable on the rating horizon, given a capital structure it considers unsustainable.

Liberty Latin America has said in public that LPR's liquidity will continue to be funded with local assets. In Fitch's view, gradual operational improvements are not enough to rebalance the structure or to position the company to refinance the senior secured notes due in October 2027. Fitch believes LCPR may seek a distressed-debt exchange or a similar transaction. Unrestricted cash, expected negative free cash flow, and committed facilities appear insufficient to cover that maturity. LCPR hired Moelis and Ropes & Gray. Liberty Latin America announced it will not support LCPR's liquidity requirements.

Fitch describes an aggressive structure that must be addressed before 1.2 billion dollars in secured notes come due in October 2027. It projects net leverage over EBITDA toward 8.0 times in 2027, from 8.6 in 2025. In the second quarter of 2026, total debt of some 3.1 billion consisted mainly of 1.2 billion in 2027 notes (38 percent), 820 million in 2029 notes (27), 620 million in the 2028 term loan (20), and 50 million (2) in tower transactions. The rest is in the unrestricted group: 260 million and 150 million in term loans. A new 140 million revolving line also came in, undrawn at quarter-end.

Fitch analyzes LCPR independently, with a silo structure, without cross-guarantees or cross-defaults with Liberty Latin America. In January 2026, certain restricted-group creditors sued LCPR and LLA over the transfer of part of the collateral to the unrestricted group. Fitch does not incorporate payments for Echostar spectrum assets in the horizon. An ESG Relevance Score of 4 cites hurricanes. Another, of 4, cites the collateral-transfer strategy. Those scores, Fitch clarifies, are not rating inputs.

A Fitch CC is not a Financial Oversight Board cut or a LUMA Energy outage. On August 20, Caribbean Business covers the Board holding back purchases of 3,000 and 600 megawatts. On the 19th, the same outlet covers Power Expectations' 400-megawatt gap. Three notes, three companies. This is Liberty. A reader who wants the rating action has the Fitch URL at the foot.

Source: Fitch Ratings. https://www.fitchratings.com/research/corporate-finance/fitch-downgrades-liberty-communications-of-puerto-rico-to-cc-20-08-2026