Fitch affirms Windstream

Fitch Ratings said it affirmed the BB+ issuer default ratings of Windstream Corp. and its subsidiaries following the announcement that Windstream will repurchase up to $400 million of common stock over the next two years.

Other ratings affirmed include Windstream's BBB- secured credit facility and BB+ senior unsecured notes, the BBB- senior notes of Valor Telecommunications Enterprises, LLC and Valor Telecommunications Enterprises Finance Corp., Windstream Georgia Communications' BBB- notes and Windstream Holdings of the Midwest's BB+ notes.

The outlook is stable.

Windstream's ratings incorporate expectations for Windstream to generate strong operating cash flow, to maintain stable credit-protection metrics and to have access to ample liquidity, the agency said, adding that Windstream's business profile should be relatively stable due to its primarily rural operations.

The stock repurchase program is expected to be funded primarily from free cash flows, and as a result, Fitch expects Windstream to maintain a relatively stable leverage ratio, with debt to EBITDA in the 3.2 times to 3.4 times range over the next few years.

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