By Katherine Hamilton

Cable One shares fell after Moody's downgraded several of the company's ratings, citing intense competition and a planned acquisition.

The stock retreated 7.3% to $114.74 on Tuesday. Shares have fallen 68% this year.

Moody's on Monday downgraded the broadband communications company's corporate family rating to B1 from Ba3. It also downgraded its probability of default rating to B1-PD from Ba3-PD and all of its instrument ratings by one level.

The outlook was changed to stable from negative.

Moody's said its downgrades reflect governance considerations given the expected leveraging impact from Cable One's upcoming acquisition of the remaining equity interest in Mega Broadband Investment Intermediate.

The downgrades also reflect weaker operating performance due to intense competitive pressures in the cable broadband space and secular declines in video and voice, Moody's said. Competition is resulting in customer churn and limited pricing power, it said.

Cable One's speculative grade liquidity rating was also cut to SGL-2 from SGL-1. The ratings firm cited the use of cash for the company's convertible note maturing in March 2026, as well as its acquisition of Mega Broadband, which will require external financing or revolver borrowings.

Write to Katherine Hamilton at katherine.hamilton@wsj.com

(END) Dow Jones Newswires

December 23, 2025 14:59 ET (19:59 GMT)

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