S&P cuts tw telecom debt, rates notes B+

Standard & Poor's said it revised the outlook on tw telecom inc. to stable from positive and affirmed the BB- corporate credit rating on the company.

At the same time, S&P assigned a B+ issue-level rating and 5 recovery rating to the company's proposed $400 million of senior notes due 2023 and $400 million of senior notes due 2022.

S&P also lowered the issue-level rating on its existing senior unsecured debt to B+ from BB- and revised the recovery rating on this debt to 5 from 4.

The downgrade reflects an aggregate $370 million increase in unsecured debt, which dilutes recovery prospects for existing bondholders. The 5 recovery rating indicates an expectation for modest (10%-30%) recovery in the event of payment default.

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