S&P rates GCI notes B+

Standard & Poor's said it assigned its B+ rating to GCI Inc.'s proposed $70 million 7¼% senior notes due 2014.

Outstanding ratings on GCI, including the BB corporate credit rating, BB+ bank loan rating and B+ senior unsecured debt, were affirmed. The outlook remains negative.

Proceeds from the $70 million of notes will be used to repay $10 million of senior bank debt, redeem $10 million of parent General Communications Inc.'s series C preferred stock, repurchase up to $34 million of other General Communications equity securities and for general corporate purposes.

S&P said GCI's rating primarily reflects its exposure to substantial business risk in the highly competitive telecommunications business, its modest market size and lack of geographic diversity.

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