S&P rates AirGate notes, loan

Standard & Poor's said it assigned its CCC+ corporate credit rating to AirGate PCS Inc. The company's $141 million bank credit facility has been assigned a CCC+ bank loan rating and a recovery rating of 5. The $159 million 9.375% senior subordinated secured notes due 2009, which were used to refinance debt, have been assigned a CCC- rating.

The outlook is developing.

S&P said the corporate credit rating on AirGate reflects its extremely high competitive risk, operating challenges stemming, in part, from its affiliate relationship with Sprint PCS, and aggressive leverage.

AirGate, which provided wireless voice and increasingly undifferentiated data service under the Sprint PCS brand to about 360,000 subscribers at the end of 2003, is expected to face even more intense competitive pressure in light of wireless number portability and nationwide wireless penetration having exceeded 54%.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.