NEW YORK-Moody’s Investor Services assigned its B2 rating to Western Wireless Corp.’s $1.5 billion senior secured credit facility and confirmed its B2 senior implied and Caa1 issuer ratings with a positive outlook for the rural wireless provider.
Moody’s noted the proposed refinancing of Western Wireless’ credit facility will improve the carrier’s financial flexibility by easing amortization requirements, as well as increasing the baskets for restricted investments and restricted payments. In addition, Moody’s noted the positive outlook reflected the opinion that the ratings could be upgraded during the next 12 to 18 months should Western Wireless’ domestic subscriber growth continue at 5 percent or better with improving revenue per user, stable monthly churn rates at 2.2 percent and earnings before interest, taxes, depreciation and amortization margins on service revenue of at least 45 percent.
