New York, March 31, 2016 -- Moody's Investors Service ("Moody's") has downgraded Goodman Networks, Inc.'s ("Goodman" or the "company") corporate family rating (CFR) to Ca from Caa1, probability of default rating (PDR) to Ca-PD from Caa1-PD, senior secured debt ratings to Ca from Caa1 and changed the outlook to negative from stable. The downgrade follows the company's release of its 2015 year-end results which demonstrate operating losses and negative free cash flows that raise material concern as to whether Goodman can meet its obligations over the next 12-18 months. The negative rating action also captures the above average expected loss in the event of a debt restructuring given the company's low asset coverage and weak cash flow generation.
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