Moody's rates Impsat note B3

Moody's Investors Service said it assigned a B3 corporate family rating to GC Impsat Holdings I plc and a B3 rating to the company's proposed $200 million senior unsecured note issuance.

The outlook is stable.

The proceeds of the notes will be used to fund a portion of the roughly $367 million of total funding required to consummate the purchase of Impsat Fiber Networks, Inc. by Global Crossing, Ltd.

The agency said the ratings reflect Impsat's exposure to heavy competition from large incumbent telecommunications providers in the company's Latin American territories, the company's relatively weak financial metrics, the political risks inherent in operating in Pan-Latin American countries and exchange rate risks.

The ratings are supported by Moody's expectations that the company will improve its operating performance driven by realization of cost synergies and the ownership by Global Crossing.

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