NEW YORK-Standard & Poor’s Ratings Services cut its rating on Crown Castle International Corp. to a “B-” and said the outlook for the company, which was $3.4 billion in debt at the end of the third quarter 2002, is negative.
“With wireless carriers projected to limit tower-related spending at least through 2004 due to capital constraint, flattening demand for wireless services, and availability of additional spectrum capacity resulting from recent network upgrades, the expectation that Crown Castle would be able to achieve substantial debt reduction through increased cash flows has become unrealistic,” said S&P credit analyst Michael Tsao.
S&P also warned that that a prolonged industry slump will likely increase the potential for financial restructuring and said if industry and cash flow do not improve as 2003 progresses, Crown Castle’s ratings could be lowered further.
Shares of Crown Castle were down nearly 18 percent mid-day Friday to trade at $3.93.
