NEW YORK-Standard & Poor’s Ratings Services assigned its CCC rating to Western Wireless Corp.’s $100 million convertible subordinated notes offering and placed the rating on CreditWatch with negative implications. S&P added that Western Wireless’ B- corporate credit and secured bank loan ratings, as well as its ‘CCC’ subordinated debt rating, remain on CreditWatch with negative implications.
Western Wireless said proceeds from the offering would be used for working capital and general corporate purposes.
“Western Wireless’ ratings reflect the impact of lower roaming yield and the uncertainty related to the anticipated GSM network buildout by national carriers on the company’s future roaming revenue growth,” said Rosemarie Kalinowski, S&P credit analyst.
Western Wireless announced last month that it would build out at least half of its cellular network with GSM technology after signing roaming agreements with Cingular Wireless L.L.C. and T-Mobile USA Inc. The GSM network is expected to operate alongside the CDMA, TDMA and analog technologies Western Wireless currently offers on its network.
