NEW YORK-Moody’s Investors Service Inc. said the proposed merger of U S West Media Group’s domestic wireless businesses and its interest in PrimeCo Personal Communications L.P. into AirTouch Communications Inc. will have no rating impact for either company.
The rating agency said AirTouch’s senior notes are rated Baa2, convertible preferred stock issues are rated baa3 and the short-term debt rating for commercial paper is Prime-2. U S West Inc. and its legally supported financing conduit, U S West Capital Funding senior unsecured debt, is rated Baa1 and short-term debt has a Prime-2 rating for commercial paper.
Moody’s noted that the signed letter of intent is preliminary because of the introduction of legislation into Congress that could call into question the proposed tax-free nature of the exchange.
The financial profile of AirTouch is very strong for the rating category, Moody’s said. The Baa2 senior rating was assigned based on Moody’s assessment of the numerous opportunities in the global wireless market and in anticipation that the company’s strategy of aggressive growth would result in the transactions that absorbed the considerable financial flexibility that was being generated. (See related story on Page 11).
