S&P: EarthLink notes B+, CCC+

Standard & Poor's said it assigned a B corporate credit rating to EarthLink Holdings Corp., a newly-formed holding company of EarthLink LLC.

The agency also said it assigned a B+ rating and 2 recovery rating to the company's existing $300 million senior secured notes.

S&P also assigned a CCC+ rating and 6 recovery rating to the company's existing $300 million senior unsecured notes.

The outlook is stable.

The agency also said it withdrew the corporate credit rating and issue-level ratings on EarthLink Inc.

The ratings reflect the company's vulnerable business risk profile and aggressive financial risk profile, said Michael Weinstein, an S&P analyst.

The ratings also consider its highly competitive nature of the business-oriented telecom markets in which it operates, Weinstein said in a press release.

The ratings also take into account an expectation for ongoing substantial revenue and EBITDA declines from its consumer Internet-service business and certain legacy products in its business-services segment, the agency said.

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