Moody's rates Western Wireless loan

Moody's Investors Service said it assigned a B2 rating to the new $1.5 billion in senior secured credit facilities of Western Wireless Corp. Moody's also confirmed the company's senior implied and issuer ratings at B2 and Caa1, respectively.

The facility consists of a $300 million senior secured revolving credit due 2010, a $200 million senior secured term loan A due 2010, and a $1 billion senior secured term loan B due 2011, all assigned a B2 rating. The $600 million 9.25% senior notes due 2013 were confirmed at Caa1.

The outlook is positive.

Moody's said the B2 senior implied rating reflects the continuing high financial leverage of the company, even after last year's equity offering, as 2003 free cash flow of $109.2 million represents approximately 6% of the company's debt burden (excluding the non-recourse debt at the company's unrestricted international subsidiaries).

The proposed refinancing of the secured credit facility will improve the company's financial flexibility by easing amortization requirements, as well as increasing the baskets for restricted investments and restricted payments.

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