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Published on 2/2/2006 in the Prospect News Bank Loan Daily, Prospect News Distressed Debt Daily and Prospect News High Yield Daily.

S&P affirms Eschelon

Standard & Poor's said it affirmed its CCC+ corporate credit rating on Eschelon Telecom Inc.

The outlook remains positive.

S&P noted the ratings on Eschelon reflect the company's vulnerable business position resulting from, among other factors, the highly competitive nature of the competitive local exchange carrier business, including substantial competition from the regional Bell operating companies.

Additionally, the ratings incorporate Eschelon's limited liquidity and negative discretionary cash flow generation, S&P said, adding tempering factors include the company's low cost structure and flexibility with respect to capital spending.


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