Moody's rates UbiquiTel notes Caa1

Moody's Investors Service said it assigned a Caa1 rating to the pending $135 million add-on offering of 9 7/8% senior notes due 2011 by UbiquiTel Operating Co. Moody's also affirmed the company's senior implied rating at B3 and issuer rating at Caa1.

The outlook is stable.

Moody's said the Caa1 rating for the add-on senior unsecured debt reflects the relative rank and priority of claim of this layer of debt in the context of the company's consolidated capital structure, it is currently the only piece of debt that the company has outstanding.

One noteworthy potential weakness in the company's business plan is the assumed growth in wholesale revenues, Moody's said.

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