Moody’s revises ViaWest to negative

Moody's Investors Service said it affirmed the B2 rating on ViaWest, Inc.'s term loan in response to the company announcing a $170 million add-on to finance the $162.5 million acquisition of INetU Holdings, LLC (unrated).

As part of the same action, the agency affirmed ViaWest's B2 corporate family rating and B2-PD probability of default rating, and changed the outlook to negative from stable.

The outlook action was prompted by expectations of the company continuing to be cash flow negative for the foreseeable future, the significant potential of additional debt-financed acquisitions and the likelihood of leverage of debt-to-EBITDA exceeding Moody's prior indicative downgrade trigger of 5 times for a protracted period.

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