NEW YORK-Standard & Poor’s Ratings Services lowered its corporate credit ratings on Centennial Communications Inc. and its subsidiary Centennial Cellular Operating Co. from ‘B’ to ‘B-‘; lowered the subordinated debt rating for Centennial Communications from ‘CCC+’ to ‘CCC’ and lowered the secured bank loan rating for Centennial Cellular from ‘B’ to ‘B-‘.
S&P cited the potential for increased competition in Centennial’s Caribbean wireless operation in Puerto Rico, the Dominican Republic and the U.S. Virgin Islands and continuing problems with Centennial’s Puerto Rico cable television operations. The ratings firm also expressed doubt Centennial would be able to improve its 2.5 percent domestic churn rate for its fiscal third quarter ending May 31.
S&P analyst Catherine Cosentino noted the downgrades reflected business risk in the wireless industry particularly for regional operators as they are “disadvantaged relative to the national players in terms of their ability to offer competitively priced national plans.”
