S&P downgrades Windstream

Standard & Poor's said it lowered Windstream Corp.'s corporate credit rating to BB- from BB, along with its $2.9 billion senior secured credit facility, Valor Telecommunications Enterprises' $400 million notes due 2015, Windstream Holdings of the Midwest Inc.'s $100 million notes due 2028 and Windstream Georgia Communications Corp.'s $200 million debentures due 2013 to BB+ from BBB-. The recovery rating remains unchanged at 1, which indicates 90% to 100% expectations for recovery in the event of payment default.

The agency also said it lowered Windstream's senior unsecured debt to B+ from BB- and left the recovery rating at 5, indicating a 10% to 30% recovery in the event of default.

The ratings were removed from CreditWatch, where they were placed in November following news that the company would acquire Iowa Telecommunications Services for $1.1 billion.

The outlook is stable.

The downgrade reflects expectations that access-line losses and slower digital subscriber line growth will pressure revenue and cash flow, Moody's said.

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