S&P affirms Freedom Communications

Standard & Poor's said it affirmed its BB corporate credit and bank loan ratings on Freedom Communications Inc. and affirmed its recovery ratings of 3 on the company's bank credit facilities.

The outlook is stable.

The company is amending its senior secured credit facilities. The existing facilities originally totaled $1.1 billion, consisting of a $200 million revolving credit facility and a $250 million tranche A term loan, both maturing in May 2010, and a $650 million tranche B term loan maturing in May 2012.

Under the amendment, the revolver will be increased to $300 million and term loan A to $350 million, while the term loan B will be reduced to $350 million. The amended facilities will total $1 billion. The maturities of the facilities will be extended by about a year to May 2011 and May 2013. There will be no changes in the security package or financial covenants.

S&P said the ratings on Freedom Communications reflect the company's significant debt levels attributable to its recapitalization in 2004.

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