Moody's ups UbiquiTel senior ratings

Moody's Investors Service said it upgraded the senior unsecured ratings of UbiquiTel Operating Co. and confirmed the company's other ratings.

Ratings upgraded were the company's senior unsecured issuer rating to Caa3 from Ca and $48.2 million 14% senior discount notes due 2010 to Caa3 from Ca. Ratings confirmed were the company's senior implied rating at Caa1; $47 million senior secured revolver due 2007 at B3; $112.7 million senior secured term loan A maturing 2007 and $117.3 million senior secured term loan B maturing 2008, both at B3; and $100.4 million 14% senior subordinated discount notes due 2010 at C.

The outlook was changed to stable from negative.

Moody's said the upgrade to UbiquiTel's senior unsecured ratings reflects the improved health of the company due to the recent amendment to its operating agreements with Sprint Corp. (senior unsecured Baa3) and the solid recent financial performance of the company.

Moody's noted it remains concerned about the high level of secured bank debt in the company's capital structure and the possibility that the company will need to seek further amendments to the financial covenants contained in the credit agreement.

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