2009-11-06 22:55:03 -
Fitch Ratings has upgraded the following ratings of Centennial Communications Corp. (CYCL) and its subsidiaries subsequent to AT&T's Inc. (AT&T) announcement that it had completed the acquisition of CYCL on Nov. 6, 2009. Certain ratings will also be withdrawn.
CYCL
--Issuer Default Rating (IDR) upgraded to 'A' from 'B';
--Senior unsecured notes upgraded to 'A' from 'CCC+/RR6'.
Centennial Cellular Operating Co.
--IDR upgraded to 'A' from 'B';
--Senior secured credit facility upgraded to 'A' from 'BB/RR1' and the rating withdrawn;
--Senior unsecured notes upgraded to 'A' from 'BB/RR1'.
The Rating Outlook is Stable.
The upgrade reflects Fitch's view that the acquisition by AT&T, which has
an IDR of 'A', will significantly improve CYCL's financial and business profile. As of Sept. 3, 2009, approximately $500 million was outstanding under CYCL's term loan. CYCL had no borrowings under its $150 million revolving credit facility. AT&T has called for redemption all of CYCL's outstanding long-term debt with principal amount of approximately $1.4 billion and has terminated CYCL's existing credit facility. Consequently, when the unsecured notes are fully redeemed, the issue and IDR ratings will be withdrawn. Since AT&T has terminated CYCL's credit facility at the close of the transaction, the credit facility ratings will be withdrawn.
Additional information is available at www.fitchratings.com :
.
ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK:
FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS :
.
IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE WWW.FITCHRATINGS.COM :
.
PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE.
Fitch Ratings, ChicagoBill Densmore, +1-312-368-3125John
Culver, CFA, +1-312-368-3216orBrian Bertsch, +1-212-908-0549(Media
Relations, New York)
brian.bertsch@fitchratings.com : mailto:brian.bertsch@fitchratings.com
