S&P puts UbiquiTel on positive watch

Standard & Poor's said it placed its ratings on UbiquiTel Inc. and its operating subsidiaries, including UbiquiTel Operating Co., and the CCC+ corporate credit rating, on CreditWatch with positive implications.

Ratings on watch include UbiquiTel Operating Co.'s corporate credit rating at CCC+ and senior unsecured debt at CCC.

S&P said the action is based on steady improvement in the company's wireless business, including continued subscriber growth, increased roaming and wholesale revenues and improved operating efficiencies that have resulted in better EBITDA margins and strengthening credit measures.

Upgrade potential likely will by limited to one notch because of concerns about slower subscriber growth going forward and the significant capital program currently underway at the company to upgrade its network and launch evolution data optimized capabilities in certain markets, S&P said.

S&P said its review will not be contingent on the outcome of the company's pending litigation with Sprint Nextel Corp.

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