S&P assigns Windstream notes BB-

Standard & Poor's said it assigned its BB- rating to Windstream Corp.'s proposed offering of $500 million senior notes due 2019.

The rating on the new notes is two notches below the corporate credit rating, reflecting the significant amount of secured debt in the capital structure, the agency said.

All other ratings on Windstream Corp are affirmed, S&P noted.

The outlook is negative.

Proceeds from the offering will be used to repay $500 million outstanding under the term loan portion of the company's senior secured credit facilities, the agency said.

According to S&P, the ratings reflect an aggressive shareholder-oriented financial policy with a commitment to a substantial common dividend that limits potential debt reduction, accelerating competition for voice and data services from cable operators that could lead to significant pricing and margin pressure and flat-to-declining revenues from its mature local telephone business.

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