CAI Wireless to 'D'; CS Wireless Placed on S&PWatch.NEW YORK--(BUSINESS WIRE)--Standard & Poor's CreditWire 7/7/98--Standard & Poor's today lowered its senior unsecuredrating on CAI (1) (Computer-Assisted Instruction) Same as CBT. (2) See CA. CAI - Computer-Aided Instruction Wireless Systems Inc. to 'D' from triple-'C'-plus. The downgrade Downgrade A negative change in the rating of a security. Notes: For example, an analyst may downgrade a stock from strong buy to buy, or a bond rating agency may downgrade a bond from AAA to AA. is based on the company's announcement that it will likely seek a voluntary Chapter 11 filing around July 27, 1998, as well as the multiple extensions of interest payments on the 12.25% notes which was originally due June 1, 1998. The corporate credit rating and outlook has been revised to not meaningful. Additionally, Standard & Poor's lowered its corporate credit and senior unsecured Unsecured A loan or equity interest that is given without any guarantee of payment, performance, satisfaction or opportunity for return from the recipient. No property, interest or security is used as collateral in either a guarantee or a pledge. ratings of CS Wireless Systems Inc. to single-'C' from triple-'C'-plus and triple-'C'-minus respectively. The ratings are also placed on CreditWatch with negative implications. The ratings on CS Wireless reflect the 60% ownership by CAI Wireless Systems Inc. and the likelihood of consolidation in any bankruptcy bankruptcy, in law, settlement of the liabilities of a person or organization wholly or partially unable to meet financial obligations. The purposes are to distribute, through a court-appointed receiver, the bankrupt's assets equitably among creditors and, in most filing. CS Wireless is also 36% owned by Heartland Wireless Communications wireless communications System using radio-frequency, infrared, microwave, or other types of electromagnetic or acoustic waves in place of wires, cables, or fibre optics to transmit signals or data. Inc., which is also rated 'D'. Standard & Poor's continues to believe that the current business of analog transmission Analog transmission is a method of conveying voice, data, image, signal or video information using a continuous signal which varies in amplitude, phase, or some other property in proportion to that of a variable. of multichannel Using two or more paths for transmission or processing. It can refer to a variety of architectures including (1) multiple I/O channels between the CPU and peripheral devices, (2) multiple wires in a cable, (3) multiple "logical" channels within a single wire or fiber or (4) multiple television signals may not be viable over the near term and ratings on other wireless operators Wireless One Inc., American Telecasting Inc., and People's Choice TV Corp. face further potential downgrades in the near future. Standard & Poor's believes that the current business of wireless transmission of analog multichannel television signals is not competitive with existing cable or direct broadcast satellite (DBS (Direct Broadcast Satellite) A one-way TV broadcast service from a communications satellite to a small round or oval dish antenna no larger than 20" in diameter. ) offerings. The industry has suffered from a combination of lack of subscriber growth and increasing financial pressures as many companies face cash interest payments for the first time over the next year, and the withdrawal of financial support by regional phone companies. Most of the wireless cable operators faced declining revenue and subscriber levels through 1997. Standard & Poor's recognizes that many wireless cable operators are currently evaluating alternative uses for existing spectrum, including digital service, two-way data transmission, or phone service. However, revenue from these services is not sufficient to cover the existing debt burdens and may lead to further defaults. -- CreditWire
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