S&P puts NuVox on developing watch

Standard & Poor's said it placed the B- corporate credit rating on NuVox Inc. on CreditWatch, with developing implications.

This follows the company's announcement of its definitive agreement to acquire FDN in a transaction with undisclosed terms, the agency said, noting that the B- bank loan and 5 recovery rating at intermediate holding company Gabriel Communications Finance Co. are not on CreditWatch because this debt will be refinanced as part of the transaction.

Given the lack of information on merger terms and detailed financial disclosure on the acquired company and the uncertainty about the financial profile and business strategy of NuVox pro forma for the acquisition, it is not clear whether the outcome of the transaction will be detrimental or beneficial to NuVox's overall credit profile, S&P said.

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