Moody's: Triton PCS to SGL-3

Moody's Investors Service said it lowered the speculative grade liquidity rating for Triton PCS Inc. to SGL-3 from SGL-2.

Moody's said the downgrade is primarily based upon the loss of access to the company's $100 million revolver, as well as shortfalls to operating cash flows. For the four quarters ending March 31, 2004, Triton PCS generated $135.9 million of cash provided by operations and spent $143.8 million in capital expenditures.

The former speculative grade liquidity rating was bolstered by Triton PCS's good cash position and full access to its undrawn $100 million revolver. Due to a steep drop in roaming revenue, Triton PCS did not generate enough EBITDA in first quarter 2004 to be able to access its revolver. As there are no outstandings under the credit facility, the financial covenants are "inactive" and the pro forma non-compliance with the leverage covenant does not trigger a default under this facility.

Nonetheless, the loss of access to that revolver along with reduced EBITDA guidance for 2004 materially diminishes the company's liquidity position, the agency said.

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