S&P: One Communications view negative

Standard & Poor's said it revised the outlook on One Communications Corp. to negative from stable because of liquidity concerns over the next few quarters. All other ratings, including the B corporate credit rating, were affirmed.

The issuer is rated B- for its $590 millions senior secured debt.

The negative outlook reflects S&P's concern about its narrow margin of financial covenant compliance at the end of the 2007 second quarter, according to the agency.

The ratings reflect a vulnerable business risk profile stemming from a lack of competitive advantages, exposure to potential regulatory changes, low barriers to entry, integration issues and high leverage, S&P said.

Tempering factors include economies of scale, modest discretionary cash flow and long customer contracts, the agency said.

The company's total debt-to- EBITDA ratio for the 12 months as of June 30 is modest at about 3.7 times and could weaken over the next year depending on operating performance, the agency said.

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