Moody's rates Windstream notes Ba3

Moody's Investors Service said it assigned a Ba3 (LGD 5, 71%) rating to Windstream Corp.'s proposed $400 million senior unsecured notes due 2018.

According to the agency, the company said it expects to use the net proceeds primarily to repay the $300 million used for the acquisition of Iowa Telecommunications Services, Inc., which closed June 1, and for general corporate purposes.

Moody's said it expects Windstream to maintain its good liquidity, driven by healthy cash flow from operations.

The ratings reflect the outlook for ongoing modest wire line revenue declines and expectations that the company will be able to reduce its adjusted debt-to-EBITDA financial leverage, which increased to 4.2x in the past year to complete four acquisitions, the agency said.

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