S&P: Cincinnati Bell loan BB-

Standard & Poor's said it assigned a BB- rating and 1 recovery rating to Cincinnati Bell Inc.'s proposed $200 million revolving credit facility due 2017.

The 1 recovery rating indicates 90% to 100% expected default recovery.

The company will be refinancing its existing $210 million revolving credit facility due 2014. The agency also said it expects the company to repay all or a portion of its 7% senior notes due 2015 and a portion of other senior notes with proceeds from the $500 million stand-alone debt financing at subsidiary CyrusOne Inc.

S&P said it does not expect any changes to the issue-level or recovery ratings on existing senior secured or unsecured notes as a result of the potential debt repayment.

The borrower under the proposed senior secured revolving credit facility is Cincinnati Bell. The facilities are guaranteed by all direct and indirect domestic subsidiaries, excluding unrestricted subsidiaries related to CyrusOne.

The credit facility is structurally junior to obligations at the subsidiaries, including the unsecured notes at Cincinnati Bell's wholly owned incumbent local exchange carrier subsidiary Cincinnati Bell Telephone Co., as well as the receivables financing facility at wholly owned subsidiary Cincinnati Bell Funding LLC.

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