S&P rates UbiquiTel notes CCC

Standard & Poor's said it assigned its CCC rating to UbiquiTel Operating Co.'s $250 million senior unsecured notes due 2011. UbiquiTel Operating Co. is a subsidiary of UbiquiTel Inc., a Sprint PCS affiliate.

Simultaneously, S&P said it revised the rating on UbiquiTel Operating Co.'s senior unsecured debt to CCC from CC due to the lower amount of priority obligations in the company's capital structure as a result of this transaction. The CCC bank loan rating on UbiquiTel Operating Co. was withdrawn as a result of this transaction. All other outstanding ratings on UbiquiTel and the operating company, including the CCC corporate credit rating, were affirmed.

The outlook was revised to positive from developing.

S&P said the ratings reflect UbiquiTel's high debt leverage, weak cash flow, and high churn rate. On the positive side, revenue growth demonstrated some improvement in 2003, increasing almost 25%, attributable to increased subscribers, higher average revenue per unit of $58, and increased demand for PCS Vision.

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