S&P rates Triton PCS loan B, cuts senior rating

Standard & Poor's said it assigned its B rating to Triton PCS Inc.'s $250 million secured term loan facility due 2009 and assigned a recovery rating of 1 to the loan.

Simultaneously, the senior unsecured debt rating on the company was lowered to CCC from CCC+ due to the higher amount of secured debt now in the capital structure. Other existing ratings, including the B- corporate credit rating, were affirmed. The outlook is negative.

Proceeds of the term facility will primarily be used to retire certain outstanding debt securities through open market purchases and privately negotiated transactions. This loan will replace the existing $100 million senior secured revolving credit facility.

S&P said the ratings reflect Triton PCS's increased business risk profile following the Cingular Wireless LLC/AT&T Wireless Services Inc. merger, an expected decline in EBITDA due to lower roaming revenue, and the company's high debt leverage.

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