NEW YORK-Standard & Poor’s placed its “B+” corporate credit and “B” senior unsecured debt ratings on Pinnacle Holdings Inc. along with the company on CreditWatch with negative implications.
The CreditWatch listing is based on ongoing uncertainty regarding resolution of the Securities and Exchange Commission’s investigation of the independence of Pinnacle’s public accounting auditor and weaker-than-expected operating performance in the third quarter, Standard & Poor’s said.
The SEC investigation has constrained Pinnacle’s ability to access funding for acquisition activities. These limited acquisition-related additions in the fourth quarter, coupled with the discontinuation of various unprofitable managed-site agreements and churn from the deconstruction of customer Nextel Communications Inc.’s overall network, have all contributed to the decline in Pinnacle’s revenue-generating portfolio.
