Moody's rates Hawaiian Telcom loan B1

Moody's Investors Service said it assigned a B1 (LGD3, 36%) rating to Hawaiian Telcom Communications, Inc.'s proposed new $300 million senior secured term loan due 2017.

The agency also said it affirmed its B1 corporate family rating.

The proceeds will be largely used to refinance the existing term loan at Hawaiian Telcom.

The outlook remains stable.

The ratings reflect its diverse base of recurring revenues, healthy market share, modest leverage and adequate cash flows, Moody's said.

These positives are offset by the company's relatively small scale, tough competition from cable triple-play bundled service and the long-term challenges associated with wireless substitution, the agency said.

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