Moody's upgrades Price Communications to investment grade

Moody's Investors Service upgraded Price Communications Wireless to investment grade including raising its $525 million 9.125% senior secured notes due 2006 to Baa2 from Ba2 and its $175 million 11.75% senior subordinated notes due 2007 to Baa3 from B2.

Moody's said the action is based on its opinion that Verizon Wireless' (senior unsecured at A2) acquisition of Price will close in the first half of 2002.

The ratings recognize the structure of the acquisition, Moody's added. Price's two debt issues will be assumed by a new partnership that will be managed by but only 55% owned by Verizon Wireless.

The partnership is expected to raise its own debt to refinance the two issues, Moody's said.

Fitch rates new Northwest Airlines notes B+

Fitch Ratings assigned a B+ rating to Northwest Airlines Corp. new $300 million senior unsecured notes. The outlook is Negative.

Fitch said the B+ rating reflects signs of stabilization in Northwest's cash flow position that have begun to appear over the last several weeks.

"Following the unprecedented collapse in air travel demand that resulted from the events of September 11, Northwest's revenue per available seat mile performance has improved steadily," Fitch commented.

In the fourth quarter, revenue per available seat mile fell 16% year on year, in line with the industry, with each month since September showing sequential improvements, Fitch noted.

Northwest continues to enjoy a revenue per available seat mile premium over the U.S. industry average, due in large part to its strong competitive position at the Minneapolis-St. Paul and Detroit hubs, Fitch commented. The opening of the new WorldGateway terminal at Detroit should improve Northwest's customer appeal.

S&P raises Clondalkin outlook

Standard & Poor's raised its outlook on Clondalkin Industries plc to positive from stable. The company's corporate credit rating is B+.

S&P rates new Hovnanian notes

Standard & Poor's assigned new ratings to Hovnanian Enterprises Inc.'s new notes, a B to its $150 million 8.875% senior subordinated notes due 2012 and BB- to its $100 million 8.0% senior unsecured notes due 2012.

S&P takes Ntelos off watch

Standard & Poor's confirmed Ntelos Inc. and removed the company's ratings from CreditWatch with negative implications. The outlook is negative. Ratings affected include Ntelos' $280 million 13% notes due 2010 and $95 million 13.5% subordinated notes due 2011, both rated CCC+, and its $100 million senior secured revolving credit facility due 2007, $75 million senior secured term loan A due 2007 and $150 million senior secured term loan B due 2008, all rated B+.

S&P said its action follows Ntelos' announced it has obtained covenant amendments to its $325 million secured bank facilities.

The bank loan had included a minimum operating cash flow test that NTELOS would have been unable to meet in the first quarter of 2002, S&P noted. This minimum requirement was lowered under the revised bank agreement for 2002. Ntelos also obtained revised debt-to-EBITDA requirements for 2003.

The amendments alleviated S&P's near-term liquidity concerns and increased the company's financial flexibility, the rating agency said.

But it added that Ntelos still faces the challenge of aggressively growing cash flows from its wireless business in 2002 to meet the minimum operating cash flow requirements in the revised bank agreement.

"Absent substantial growth in wireless cash flows, the company will be unable to produce credit metrics supportive of the current ratings," S&P commented.

S&P keeps Associated Materials on developing watch

Standard & Poor's kept Associated Materials Inc. on CreditWatch with developing implications. Its corporate credit rating is BB.

S&P said its action follows Associated Materials' announcement it will be sold to an affiliate of private equity firm Harvest Partners, Inc. The transaction includes the company's $75 million of 9¼% senior subordinated notes, which will be refinanced.

S&P said Associated Materials' ratings could be raised, lowered, or affirmed depending on the company's capital structure following completion of the transaction.

S&P cuts SpectraSite outlook

Standard & Poor's lowered its outlook on SpectraSite Holdings Inc. to negative from stable. The corporate credit rating is B.

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