NEW YORK-Standard & Poor’s Ratings Services lowered its corporate credit rating on Sprint PCS affiliate UbiquiTel Inc. and its subsidiary UbiquiTel Operating Co. from ‘CCC+’ to ‘CC’ following the carrier’s debt exchange offer for up to $225 million of its 14 percent senior subordinated discount notes due April 15, 2010.
“The proposed transaction is viewed as a distressed exchange, given the company’s limited liquidity position and the discount to accreted value of the offer,” said Rosemarie Kalinowski, credit analyst for S&P.
The credit ratings agency also said that upon completion of the exchange offer, the corporate credit rating of UbiquiTel and UbiquiTel Operating would be lowered to ‘SD’ as a selective default, and the rating of the existing 14 percent senior subordinated discount notes will be lowered to ‘D’.
