S&P rates Dobson convertibles, floaters CCC

Standard & Poor's said it assigned its CCC rating to Dobson Communications Corp.'s proposed offering of $150 million senior unsecured convertible notes due 2025 and $150 million of senior unsecured floating-rate notes maturing in 2012.

The agency added its B- corporate credit rating on Dobson also is affirmed and the outlook is negative.

S&P said the ratings on Dobson reflect elevated financial risk from the company's high debt leverage and negative discretionary cash flow, subscriber losses caused by increased churn over the last year, uncertainty regarding the impact of the new roaming agreement with Cingular Wireless LLC and increased competition from large, well capitalized competitors.

These risks are tempered by healthy wireless industry growth, opportunities for increased data revenue, adequate liquidity and geographic diversity, the agency added.

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