Fitch: Windstream unchanged

Fitch Ratings said it believes Windstream Corp.'s proposed acquisition of Paetec Holding Corp. for about $2.3 billion will not affect its issuer default rating of BB+.

The outlook is stable.

Fitch said it believes the proposed acquisition is consistent with the current rating rationale regarding Windstream, which incorporates the diversification of revenues and cash flow through the expansion of its business services revenue base.

Windstream is using a material proportion of equity to finance the transaction, thus minimizing the effect on its credit profile, the agency said.

The transaction complements Windstream's acquisitions over the past two years in business services, which have included providers of competitive local exchange services, data hosting services and fiber optic transport services, Fitch said.

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