NEW YORK-Moody’s Investors Service Inc. announced Dec. 1 it upgraded to A1 from B1 its rating on $400 million in convertible subordinated notes issued by DSC Communications Corp.
Moody’s said it based its upgrade on the decision by Alcatel S.A., Paris, to guarantee the DSC debt “fully and unconditionally on a senior basis.”
Alcatel made that decision after it acquired DSC in a stock-for-stock transaction in September. DSC, based in Plano, Texas, has been renamed Alcatel USA Inc.
Moody’s also said the Alcatel USA notes now are convertible into Alcatel American Depository Shares.
Alcatel, with sales of $17 billion during the first nine months of 1998, “is one of the world leaders in providing advanced solutions for telecommunications systems and equipment,” Moody’s said.
Alcatel USA “is a global provider of telecommunications products, including digital switching, transmission, access and network management systems,” the rating agency said.
