NEW YORK—Following AirGate PCS’s release of a revised quarterly outlook, which quickly resulted in a tumbling of its stock value which reverberated throughout the wireless sector Thursday, Standard & Poor’s said it placed a single ‘B’ minus corporate credit rating on the company on CreditWatch.
Standard & Poor’s expressed concern that AirGate will be unable to meet the covenants required under the senior credit facility for its wholly owned operating subsidiary iPCS Inc. and that the company’s overall liquidity may not allow it to take necessary financial risks. Therefore, the resolution of the CreditWatch listing will depend on the outcome of amendments to AirGate’s covenants and improvement in the company’s financial statistics.
