Moody's affirms Windstream

Moody's Investors Service said it affirmed the Ba2 corporate family and probability of default ratings of Windstream Corp. and placed the ratings of D&E Communications Inc. on review for a possible upgrade following the announced acquisition of D&E by Windstream.

The acquisition price is about 5.0x the trailing EBITDA of about $64 million for D&E, which is in line with recent rural telephone company valuations.

The agency added that Windstream expects to recognize operating synergies from the merger by migrating the acquired lines onto its systems and eliminating redundant overhead, and will expand its presence in Pennsylvania by about one third.

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