NEW YORK-Standard & Poor’s Ratings Services lowered its corporate credit ratings on UbiquiTel Inc. and its subsidiary UbiquiTel Operating Co. from ‘CC’ to ‘SD’ and lowered its rating on UbiquiTel Operating’s 14 percent senior subordinated discount notes due April 15, 2010 from ‘C’ to ‘D’ following the completion of the carrier’s debt exchange offer.
“The senior subordinated discount notes are rated ‘D’ because we view the transaction as a distressed exchange due to the discount to accreted value of the offer,” explained S&P credit analyst Rosemarie Kalinowski.
S&P also affirmed its ‘CC’ senior secured bank loan rating on UbiquiTel Operating and revised its CreditWatch implications from negative to positive.
