Shares of U.S.-based cable and internet provider Frontier Communications dropped Wednesday after Goldman Sachs downgraded the company to sell on concerns it may suspend its dividend.
The shares closed more than 10 percent lower and are off nearly 40 percent for the year, to date.
Frontier didn’t immediately respond to CNBC’s request for comment.
“We believe FTR may choose to suspend its dividend after 1Q17 in order to delever and build liquidity to address significant debt maturities in 2020-2022, even if it is not required to do so per its bonds’ covenants,” Goldman analyst Brett Feldman said in a Wednesday note.
