S&P affirms Hawaiian Telcom

Standard & Poor's said it affirmed its ratings on Hawaiian Telcom Communications, Inc. and related entities, including its B corporate credit rating and removed the ratings from watch.

The outlook is negative.

Affected ratings include the company's secured bank loan at B, $350 million senior notes due 2013 at CCC+ and $150 million subordinated notes due 2015 at CCC+ as well as Verizon Hawaii Inc.'s $150 mil secured debentures at B.

The agency said the ratings for Hawaiian Telcom reflect significant operational and integration risk associated with transitioning to a stand-alone company, the heightened competitive environment for voice and data services in Hawaii and a highly leveraged financial profile.

Tempering factors include the company's position as the incumbent telephone provider in Hawaii and advanced network infrastructure, the agency added.

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