NEW YORK-Citing financial profile improvement, Standard & Poor’s Ratings Services placed its CCC- corporate credit rating and ‘C’ subordinated debt rating for Sprint PCS affiliate US Unwired Inc. on CreditWatch with positive implications.
S&P noted that US Unwired’s improving financial position is the result of recent debt-for-equity exchanges, a proposed refinancing to repay the company’s bank credit facility and purchase of senior subordinated discount notes as part of a cash tender offer. S&P added that upon completion of the refinancing it would raise the corporate credit rating of US Unwired to CCC+ with a positive outlook.
S&P also affirmed its CC corporate credit rating and C senior unsecured debt rating on US Unwired’s wholly owned IWO Holdings Inc. subsidiary, which is expected to file for bankruptcy protection due to its inability to pay a July interest payment on its senior notes due to “very weak liquidity.”
