Moody’s ups TelePacific PDR to B3-PD

Moody's Investors Service said it affirmed U.S. TelePacific Corp.'s B3 corporate family rating following the issuance of new (unrated) senior secured notes.

Proceeds were used to fund the acquisition of DSCI Corp.

In connection with the issuance of new notes, Moody's upgraded TelePacific's probability of default rating to B3-PD from Caa1-PD.

The upgrade reflects the recent change to company's capital structure, which now features secured notes in addition to the existing secured bank facilities, the agency said.

The outlook remains stable.

Moody’s said the purchase of DSCI is strategically positive as it offers TelePacific the opportunity to address a national market for managed services, specifically for hosted voice solutions. DSCI offers cloud-based services that customers can access via third party connectivity. This allows TelePacific to expand beyond its facilities-based footprint in California, Nevada and Texas and compete nationally for these customers, the agency added.

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