Moody's: Kentucky Data outlook stable

Moody's Investors Service said it revised the outlook for Kentucky Data Link, Inc. to stable from positive and affirmed its corporate family rating at B1, its probability-of-default rating at B2 and its $49 million senior secured bank credit facility due 2012 and $240 million senior secured bank credit facility due 2014 at B1 LGD3 (34%).

The outlook revision reflects Moody's view that the near-term likelihood of an upgrade has diminished. The agency said this is because it believes revenue growth will moderate as growth in end markets continue to be impacted by weak economic conditions and the company works to replace a large volume of circuits that have terminated.

The outlook revision also incorporates the execution risk with Kentucky Data Link's strategy to diversify its customer base, lower-than-expected EBITDA growth and a modest deterioration in the company's liquidity profile, Moody's said.

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