Moody's rates WilTel loans B3

Moody's Investors Service assigned B3 ratings for the proposed new senior secured bank credit facilities of WilTel Communications LLC (a wholly owned subsidiary of WilTel Communications Group Inc.), including a $360 million term loan due 2010 and a $25 million revolving credit facility due 2009.

Moody's said the ratings broadly reflect the company's high and growing business risk given eroding business fundamentals for the long-haul carrier industry, offset somewhat by comparatively moderate financial risk and very good near-term liquidity.

The outlook is stable.

WilTel's senior implied rating is B3, its issuer rating is Caa1, its $25 million revolving senior secured credit facility due 2009 is rated B3 and its $360 million senior secured term loan due 2010 is rated B3.

Moody's said the ratings also reflect the highly competitive market in which WilTel operates, its relatively short post-bankruptcy operating history and continued supply and demand imbalances for the foreseeable future.

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