S&P: GCI view negative

Standard & Poor's said it revised the outlook on GCI Inc. to negative from stable and affirmed the BB- corporate credit rating.

The outlook revision reflects weak credit measures following the company's announcement that it will lease transponder capacity from Intelsat, S&P said. Leverage would increase to about 5.2 times from 4.5 times.

Ratings reflect significant exposure to the highly competitive Alaskan telecom market, lack of geographic diversity, uncertain growth prospects for new investment projects and high leverage, the agency said.

Tempering factors include GCI's well-positioned incumbent cable business, its network access business and bundled service offerings, S&P noted.

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