Moody's affirms Rural Cellular

Moody's Investors Service said it affirmed all ratings of Rural Cellular Corp., including the B3 corporate family rating and Caa2 (LGD5, 84%) senior subordinated note rating, following company's announcement that it will upsize its current offering of floating-rate senior subordinated notes due 2013 to $425 million from $115.5 million.

The outlook remains negative.

The incremental proceeds will be used to redeem all of the company's $300 million 9¾% senior subordinated notes due 2010.

The agency said that the upsized refinancing transaction will result in a modest improvement to the company's debt maturity schedule and slight reduction in interest expense.

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