S&P rates Cellnet loans B-, CCC

Standard & Poor's said it assigned its B- corporate credit rating to Cellnet Technology Inc.

At the same time, S&P assigned a B- senior secured bank loan rating and 3 recovery rating to the company's $250 million seven-year first-lien senior secured bank facility and $30 million revolving credit facility.

A CCC rating and 5 recovery rating were assigned to the company's $100 million eight-year second-lien senior secured bank facility. The outlook is stable.

S&P said the ratings reflect Cellnet's reliance on the acceptance and penetration rate of fixed-network automated meter reading services, an aggressive financial policy, high leverage, historically capital-intensive operations and low near-term cash flow generation.

Cellnet's financial profile is highly leveraged. Lease-adjusted total debt to EBITDA for 2004 was high at 6.8x.

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