S&P assigns Citizens notes BB+

Standard & Poor's said it assigned a BB+ rating to Citizens Communications Co.'s $750 million of senior unsecured notes due 2015 and 2019.

The agency said it also affirmed all ratings on Citizens, including the BB+ corporate credit rating.

The outlook remains negative despite marginally improved liquidity from the refinancing of a $500 million debt due in 2008 because of its expectations for declining revenue and access lines, the agency said.

Proceeds of the new issues will be used to refinance $200 million of existing debt under the company's bridge loan facility associated with the acquisition of Commonwealth Telephone Enterprises Inc. and to retire $495.2 million of Citizens' 7.625% senior notes due 2008, the agency added.

S&P noted that the ratings on Citizens reflect a shareholder-oriented financial policy with an aggressive dividend payout and share repurchases, a heightened business risk profile resulting from rising competition from cable telephony and wireless substitution, which have caused access-line losses, integration risk from the acquisition of Commonwealth and longer-term risk to regulatory support.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.