NEW YORK-Moody’s Investors Service announced May 21 it raised the investment grade ratings on the outstanding senior unsecured debt of Cincinnati Bell Inc. to A2 from A3.
A key factor in the New York-based rating agency’s upgrade decision is the status of a significant subsidiary of the Ohio regional Bell operating company, Cincinnati Bell Information Systems.
“CBIS should benefit from long-term agreements with some of the key domestic wireless, wireline and cable providers to provide a number of advanced billing and processing functions,” said the report by Robert Ray, managing director, and Cyrille R. Conseil, analyst, for Moody’s Telecommunications/Media ratings.
“CBIS … should achieve a more diversified revenue stream with the growth of new [personal communications services] providers going forward. Also, the anticipated growth in the number of cellular subscribers in the United States, and the overall growth of the wireless market should drive the bulk of growth in bills processed, earnings and cash flow.”
