S&P affirms Alaska Communications

Standard & Poor's said it affirmed its ratings on Alaska Communications Systems Group Inc. and subsidiaries, including the B+ corporate credit rating, BB- senior secured credit facility, B- senior unsecured debt and subordinated debt.

All ratings were removed from CreditWatch negative, where they were placed June 8 due to concern about higher financial risk accompanying the company's proposed $400 million income deposit securities offering. The outlook is negative.

At the same time, S&P assigned its 1 recovery rating to Alaska Communications' existing $250 million senior secured credit facility.

S&P said the ratings reflect an aggressive shareholder-oriented financial policy, financial risk from acquisition and capital spending-related debt and competitive pressure within the narrow and slow-growth Alaska telecommunications market.

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