S&P lowers Consolidated Communications

Standard & Poor's said it lowered its corporate credit rating on Consolidated Communications Holdings Inc. to B+ from BB-.

The agency said it also lowered the rating on the company's $930 million secured bank loan facilities to B+ from BB-.

The recovery rating remains at 3, S&P noted.

The outlook is stable.

The agency said that the downgrade reflects its expectation that ongoing access-line losses, which reached 5.7% in the second quarter of 2008, coupled with the current economic climate and increasing competition from cable telephony and wireless substitution, make it unlikely for Consolidated to meaningfully de-lever toward its target level in the low-4x area through at least 2009.

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