S&P affirms Time Warner Telecom

Standard & Poor's said it affirmed the B long-term corporate credit and B-2 short-term credit ratings on Time Warner Telecom Inc.

The outlook is negative.

The agency said that this follows the company's recent announcement of its definitive agreement to acquire Xspedius Communications LLC for $531.5 million, including a cash component of $212 million.

S&P noted it sees some strategic benefits from the acquisition, however, given the small size of Xspedius relative to Time Warner Telecom, the acquisition's operational benefits do not materially assuage its fundamental concerns about the company's longer term business prospects.

The agency added that the ratings for Time Warner Telecom continue to reflect the risks inherent in competing with larger, stronger incumbents in an industry subject to increasing price competition.

© 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.