S&P upgrades U.S. TelePacific

Standard & Poor's said it raised its corporate credit rating to B- from CCC+ on U.S. TelePacific Holdings Corp. The CCC+ rating remains on its $370 million senior secured term loan, upsized from $360 million, and $25 million revolving credit. Its recovery rating is 5, indicating an expectation of 10% to 30% recovery in the event of default.

The outlook is stable.

The ratings were removed from positive watch, where they were placed in January in response to the company's proposed financing plan.

The upgrade reflects an improvement in credit quality following the successful completion of the refinancing transaction, S&P said, including a greater covenant cushion under the new senior secured credit facility. The agency said it considered the prior covenant package inadequate.

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