Moody's: Telephone and Data outlook to stable

Moody's Investors Service said it affirmed Telephone and Data Systems, Inc.'s Ba1 corporate family rating and changed its outlook to stable from negative.

Moody's affirmed the company's Ba2 senior unsecured ratings and United States Cellular Corp.'s Ba1 senior unsecured ratings.

The agency said these actions are a result of a stabilization of the company's financial and operating profile, including its wireless operating subsidiary United States Cellular.

The company’s speculative grade liquidity rating is unchanged at SGL-1, reflecting its very strong liquidity.

Moody’s said the company’s Ba1 corporate family rating reflects its low leverage of about 2.9x (Moody's adjusted), broad asset base, predictable recurring revenues and its very good liquidity. The rating is also supported by a patient ownership structure and Moody's expects the company’s controlling shareholders to continue to pursue fiscally conservative financial policies and reinvest into the business.

The stable outlook reflects Moody's view that the company will maintain its market share and that leverage (Moody's adjusted) will remain below 3.5x for at least the next two years.

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