Moody's drops One Communications

Moody's Investors Service said it downgraded One Communications Corp.'s corporate family rating to B2 from B1 and changed the outlook to stable.

As part of the rating action, the ratings on One Communications' first-lien term loan and revolving credit facility were downgraded to B2, the agency said.

Moody's noted that the ratings action reflects lower-than-expected revenue growth and free cash flow generation.

Although the company continues to realize expected cost synergies, lower-than-anticipated sales force productivity and a complete turnover among executive management have contributed to a revenue shortfall relative to previous projections, Moody's said.

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