NEW YORK-Standard & Poor’s Corp. lowered its rating on about $90 million in outstanding debt and $250 million in pending debt securities of Aliant Communications Co. because of the Nebraska phone company’s recent acquisition by Alltel Corp.
“Ratings are constrained by the credit profile of parent Alltel Corp., which is expected to generate strong cash flows from its wireline and wireless businesses,” said Thomas Egan and Catherine Cosentino, S&P telecommunications analysts.
“However, expectations that (Alltel) will continue to pursue opportunistic acquisitions in the wireline and wireless industries, (like) the Liberty Cellular Inc. definitive acquisition announced in June, limits upgrade potential.”
The New York rating agency lowered its investment grade ratings on Aliant’s senior unsecured debt to A from AA to mirror Alltel’s ratings.
“Alltel’s ratings reflect the strength of its core rural local telephone franchise and accompanying attractive margins … tempered by the operational and financial risk resulting from (its) acquisition of 360
