S&P cuts SR Telecom to CC

Standard & Poor's said it lowered its corporate credit rating on SR Telecom Inc. to CC from CCC. At the same time, the senior unsecured debt rating on the company's C$71 million debentures due April 22, 2005 was lowered to CC from CCC. In addition, the ratings were placed on CreditWatch negative.

S&P said the ratings actions and CreditWatch placement follow the company's announcement concerning its refinancing efforts as well as revised financial guidance.

SR Telecom announced that it has entered into a letter of intent with respect to a senior secured credit facility for up to $50 million. S&P said it had been expecting a commitment to be forthcoming for the refinancing in December or January.

S&P said the announcement indicates the company is having difficulties obtaining all necessary commitments from various financial stakeholders, and the company is now clearly operating under severe time constraints, with its debentures due three months from now.

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