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S&P: Telecom Credit Ratings Still Negative
Standard & Poor's ratings report card says 52 of 68 issuers have non-investment grade ratings and 34 have negative ratings outlooks
August 6, 2002
6 Min Read
NEW YORK -- More than three-quarters of U.S. telecommunications and cable television companies have non-investment grade corporate credit ratings, according to a report released today by Standard & Poor's Ratings Services. Of the 68 issuers included in the report, 52 are rated 'BB+' or lower while 16 are regarded as investment grade. The U.S. Telecom & Cable TV Ratings Report Card examines the key issues affecting credit quality across the industry, with individual commentary on issuers ranging from cable TV companies, diversified telecommunications companies, wireless companies, competitive local exchange carriers (CLECs) and rural local exchange carriers (RLECs)."The challenges faced by the telecommunications and cable TV industries are daunting, particularly with the fallout from problems experienced by WorldCom and Adelphia Communications further eroding investor confidence in these sectors," said Standard & Poor's credit analyst Richard C. Siderman, managing director for telecommunications and cable. "Standard & Poor's sees the outlook for the balance of the year to be generally negative.""However, it is important not to paint all issuers with the same brush. Many telecom companies maintain strong market positions in solid business segments despite the pessimism overhanging this industry. This is particularly true of the regional Bell operating companies, three of which are rated 'A+' or higher," Mr. Siderman added.Overall, in addition to the low percentage of investment grade ratings, 34 of the 68 issuers have negative ratings outlooks, while only two have positive outlooks, indicating further downward pressure on telecom and cable TV ratings.Table 1: S&P's Ratings Report Card
Issuer | Rating | Outlook |
SBC Communications Inc. | AA- | Stable |
BellSouth Corp. | A+ | Stable |
Cellco Partnership (d/b/a Verizon Wireless) | A+ | Negative |
Cingular Wireless LLC | A+ | Stable |
Verizon Communications Inc. | A+ | Negative |
ALLTEL Corp. | A | Negative |
Intelsat Ltd. | A | Negative |
Telephone & Data Systems Inc. | A- | Negative |
AT&T Corp. | BBB+ | Watch Negative |
CenturyTel Inc. | BBB+ | Stable |
AT&T Wireless Services Inc. | BBB | Stable |
Citizens Communications Co. | BBB | Negative |
Comcast Corp. | BBB | Watch Negative |
Cox Enterprises/Cox Communications/Cox Radio | BBB | Stable |
Telecomunicaciones de Puerto Rico Inc. | BBB | Stable |
Sprint Corp. | BBB- | Stable |
Cablevision Systems Corp. | BB+ | Negative |
Alaska Communications Systems Group Inc. | BB | Watch Negative |
Broadwing Inc. | BB | Stable |
Charter Communications Inc. | BB | Negative |
GCI Inc. | BB | Stable |
Insight Midwest L.P. | BB | Stable |
Mediacom Communications Corp. | BB | Stable |
Hughes Electronics Corp. | BB- | Watch Negative |
Infonet Services Corp. | BB- | Stable |
American Tower Corp. | B+ | Stable |
Block Communications Inc. | B+ | Stable |
Centennial Communications Corp. | B+ | Negative |
Crown Castle International Corp. | B+ | Stable |
D&E Communications Inc. | B+ | Positive |
Dobson Communications Corp. | B+ | Stable |
Echostar Communications Corp. | B+ | Watch Positive |
FairPoint Communications Inc. | B+ | Negative |
Nextel Communications Inc. | B+ | Negative |
Northland Cable Television Inc. | B+ | Negative |
Qwest Communications International Inc. | B+ | Watch Developing |
Rural Cellular Corp. | B+ | Stable |
Time Warner Telecom Inc. | B+ | Negative |
Triton PCS Inc. | B+ | Stable |
Valor Telecommunications LLC | B+ | Stable |
Loral Space & Communications/Loral Cyberstar | B | Negative |
Madison River Telephone Company LLC | B | Stable |
NTELOS Inc. | B | Negative |
SBA Communications Corp. | B | Stable |
US Unwired Inc. | B | Stable |
Western Wireless Corp. | B | Watch Negative |
Airgate PCS | B- | Watch Negative |
Alamosa Holdings LLC | B- | Watch Negative |
Horizon PCS Inc. | B- | Watch Negative |
Insight Communications Co. Inc. | B- | Stable |
Leap Wireless International Inc. | B- | Watch Negative |
Nextel Partners Inc. | B- | Stable |
Ubiquitel Inc. | B- | Stable |
Primus Telecommunications Group Inc. | CCC+ | Negative |
RCN Corp. | CCC+ | Negative |
Allegiance Telecom Inc. | CCC | Watch Negative |
Level 3 Communications Inc. | CCC | Negative |
Pac-West Telecomm Inc. | CCC | Watch Negative |
American Cellular Corp. | CCC- | Watch Negative |
Choice One Communications Inc. | CCC- | Watch Negative |
Genuity Inc. | CCC- | Watch Negative |
KMC Telecom Holdings Inc. | CCC- | Watch Negative |
SpectraSite Holdings Inc. | CC | Watch Negative |
Adelphia Communications Corp. | D | NM |
Evercom Inc. | D | NM |
ITC DeltaCom Inc. | D | NM |
NII Holdings | D | NM |
WorldCom Inc. | D | NM |
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