Telecommunications High Yield Weekly: Weekly Update

Research evidence excerpt

Telecommunications High Yield Weekly: Weekly Update

News Summary

Telecommunications sector performance for the week ended June 29, 2026

• The ICE BofA High Yield Telecommunications Index returned -0.4% over the week

(Monday to Monday) and currently offers a YTW of 7.9%; this compares to a weekly

return of 0.1% and a YTW of 7.1% for the ICE BofA High Yield Master index.

SBA Communications – Upgraded all ratings one notch, resulting in second IG

unsecured debt rating

• S&P upgraded all SBA Communications ratings one notch – now all of the

company’s debt ratings are investment grade (IG). Specifically, it raised the issuer

credit and secured debt rating to BBB from BBB- and the unsecured debt to BBB-

from BB+. It removed the ratings from CreditWatch Positive and set the outlook at

stable outlook. This is the second IG rating for the company’s unsecured debt --

recall, Fitch rates the issuer and unsecured debt BBB- and secured debt BBB with a

stable outlook, while Moody’s rates the issuer and secured debt Ba2 and unsecured

debt Ba3 with a stable outlook. Per our understanding of bond index inclusion

criteria, the SBA senior unsecured notes will be included in the Bloomberg IG index,

as it requires two IG ratings, but it will not be included in ICE IG index, which uses a

mathematical average to determine inclusion.

• S&P said the upgrade reflects SBA’s maintenance of leverage below 7x, after

revising its leverage target to 6.0x-7.0x from (7.0x-7.5x previously), and expectation

that the company will sustain leverage at this level with a revised financial policy

that reduces the likelihood of leverage increasing above 7.25x. More specifically on

outlook, S&P said it expects the company to maintain leverage in the high-6x,