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Moody's cuts Triton PCS, rates loan B2
Moody's Investors Service said it downgraded the existing ratings of Triton PCS Inc., completing the review for possible downgrade initiated in July. Moody's also assigned a B2 rating to the proposed $250 million senior secured term loan.
More specifically, Moody's downgraded the senior implied rating to Caa1 from B2, the issuer rating to Caa1 from B2, the $725 million 8.5% senior notes due 2013 to Caa1 from B2, the $350 million 9.375% senior subordinated notes due 2011 to Ca from B3, and the $400 million 8.75% senior subordinated notes due 2011 to Ca from B3.
Moody's upgraded the speculative grade liquidity rating to SGL-2 from SGL-3.
The outlook is negative.
According to Moody's, the downgrade to Caa1 for the company's senior implied rating reflects the negative free cash flow profile of the company upon completion of the asset swap with Cingular Wireless, the poor recent financial and operating performance, the significant challenges to improve that performance, concerns that Triton PCS's capital structure is unsustainable absent substantial improvements in cash flows, and that any such improvements are likely to take at least 18 to 24 months to materialize.
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