S&P: Hargray unaffected

Standard & Poor's said its ratings and outlook on Hargray Holdings LLC (B/stable) are not affected by Hargray's announcement that it signed a definitive agreement under which an affiliate of Hargray will purchase the Central Florida operations of Smart City, excluding Smart City's Orange County Convention Center operations.

Despite the fact that financial terms were not disclosed, the agency said that its expectation is that the transaction will have a modest positive impact on key credit measures.

The company is highly leveraged, with total debt to EBITDA in the mid-6x area, the agency added.

Still, S&P said that it believes that near-term integration challenges stemming from the acquisition counter the prospects for leverage improvement.

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