AirTouch Communications DEM400M Nts Rated BBB+ by S&P.NEW YORK--(BUSINESS WIRE)--July 9, 1998--Standard & Poor's today assigned its triple-'B'-plus rating to AirTouch Communications, Inc.'s proposed estimated 400 million German mark (DEM See digital elevation model. ) denominated notes. Issue proceeds will be used to retire bank debt and commercial paper. In addition, the company's triple-'B'-plus corporate credit rating, triple-'B' preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. rating, and 'A-2' commercial paper rating are affirmed. The outlook is stable. Ratings reflect the company's large and diverse wireless operations, its strong cash flow, and management's conservative financial policies. AirTouch is the largest independently rated wireless telephone company in the U.S. The company's April 1998 acquisition of U S WEST Inc.'s cellular and personal communications services See PCS. (PCS (1) (Personal Communications Services) Refers to wireless services that emerged after the U.S. government auctioned commercial licenses in 1994 and 1995. This radio spectrum in the 1. ) businesses make it the premier cellular carrier in the western U.S. AirTouch's cellular and PCS licenses now cover over 94 million proportionate population equivalents (pops), up from 59 million, and its subscriber base has increased to 6.9 million, the second-largest in the U.S. AirTouch also serves 3.1 million domestic paging units. AirTouch's international cellular investments cover 122 million proportionate pops and 3.1 million subscribers. The company's current ratings incorporate a degree of unused debt capacity. AirTouch has absorbed an additional $1.35 billion of debt from the U S WEST acquisition, and the company can debt finance additional international diversification International diversification The attempt to reduce risk by investing in more than one nation. By diversifying across nations whose economic cycles are not perfectly correlated, investors can typically reduce the variability of their returns. and its announced stock buyback Stock buyback A corporation's purchase of its own outstanding stock, usually in order to raise the company's earnings per share. stock buyback See buyback. at the current rating level. OUTLOOK: STABLE Operating results and cash generation are expected to continue to strengthen. AirTouch's improving economies of scale and scope should cause costs to decline faster than prices. International acquisitions may limit the pace of financial strengthening following the U S WEST wireless acquisition. -- CreditWire Contact: Timothy E Caffrey, CFA (Computer Fraud and Abuse Act of 1986) Signed into law in 1986, the CFA was a significant step forward in criminalizing unauthorized access to computer systems and networks. The Act applies to "federal interest computers" that include any system used by the U.S. , New York (1) 212-208-1750 Catherine Cosentino, New York (1) 212-208-8198 Copyright 1998, Standard & Poor's Rating Services |
|
||||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion