Moody's rates RCN loans B2

Moody's Investors Service said it assigned definitive ratings to RCN Corp. in line with its provisional ratings issued in May of this year. The ratings assigned include B2 (LGD 3, 34%) ratings to its $25 million senior secured revolving credit facility due 2015 and $240 million senior secured term loan due 2016. The agency also assigned RCN, which does business as Sidera Networks, a corporate family rating of B2 and probability of default rating of B3.

The outlook is stable.

The company has completed its transaction to separate from the cable business of its former parent, old RCN Corp., as expected when Moody's said that provisional ratings were assigned.

The agency said it previously withdrew its former definitive ratings for RCN Corp., the predecessor company that also owned and housed its assets and the company's cable assets, now named RCN Telecom Services LLC.

The company has performed largely in accordance with expectations since the transaction was announced and the provisional ratings were assigned, Moody's said.

The ratings also reflect the company's small scale, competitive environment in which it operates and the inherent capital intensity of its business, the agency said.

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