S&P rates American Cellular loans B-

Standard & Poor's said it assigned a B- rating, the same as the corporate credit rating, and 3 recovery rating to American Cellular Corp.'s proposed $850 million senior secured credit facilities. The B- corporate credit rating was affirmed. A CCC rating was assigned to the company's proposed offering of $425 million of senior notes due 2015. The new notes are rated two notches below the corporate credit rating because of the significant amount of priority obligations.

The outlook is positive.

Proceeds will be used to refinance American Cellular's existing $250 million senior secured credit facilities, $900 million of 10% senior notes due 2011, and $18 million remaining 9 ½% senior subordinated notes due 2009.

The ratings reflect the ratings of American Cellular's parent, Dobson Communications Corp., and reflect increasing competition in the wireless sector, a reliance on roaming revenue and highly leveraged financial profile, S&P said.

These risks are somewhat tempered by improvement in operating trends, favorable roaming agreement with AT&T Mobility Inc. and a strengthening financial profile, the agency added.

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