Correction: Fitch Affirms Cincinnati Bell, Inc. & Cincinnati Bell Telephone.

CHICAGO -- (This is an amended version of a press release issued earlier today and contains revised rating information on Cincinnati Bell Inc.)

Fitch Ratings has affirmed the following ratings assigned to Cincinnati Bell, Inc. (CBB) and Cincinnati Bell Telephone (CBT). The Rating Outlook is Stable for all ratings.

CBB

--Senior secured bank facility 'BB-';

--7.25% senior secured notes due 2023 'BB-';

--7.25% senior unsecured notes due 2013 'B+';

--16% senior subordinated discount notes due 2009 'B';

--8.375% senior subordinated notes due 2014 'B';

--6.75% convertible preferred stock 'B-'.

CBT

--Senior unsecured notes and medium-term notes 'BB+'.

Fitch's rating of CBB reflects the relative stability and lower level of business risks associated with the company's local exchange and wireless businesses and the company's ability to generate sustained levels of free cash flow. Additionally, the ratings reflect the company's highly levered balance sheet relative to its peer group. Debt-to-EBITDA at the end of the third quarter was 4.3 times (x) and is expected to continue to decline at a modest pace over the next few years.

The company is strategically focused on delevering its balance sheet and defending and growing its local exchange and wireless businesses. CBB's local wireline business (which includes its local, hardware and managed services and other business segments) through the first nine months of 2004, accounted for 81% of consolidated revenue and 86% of consolidated EBITDA. Competitive pressure is increasing as evidenced by the 1.6% decline in total access lines year over year. Additional competitive pressures are developing as cable companies launched voice services using voice over Internet protocol (VoIP) in mid-2004. The company has been mitigating these pressures through bundling wireless and high-speed data services with its wireline voice services (local and long distance) into a package the company refers to as a 'super bundle'. As of Sept. 30, 2004, approximately 18% of the consumer households in its ILEC operating territory subscribe to a super bundle.

Cincinnati Bell Wireless (CBW) is the market share leader in the Cincinnati and Dayton, Ohio, basic trading areas and provides an avenue for CBB to further strengthen its service bundle. CBW's postpaid net additions, EBITDA and average revenue per unit (ARPU) have been under pressure in 2003 and 2004. While the company has been able to add customers at a solid pace recently, churn, at 3.7% in the third quarter of 2004 for postpaid customers, has been higher than historical levels due to network quality issues arising from the transition from the time division multiple access network (TDMA) to the global system for mobile communications (GSM)/general packet radio service (GPRS) network. The company has also experienced additional costs associated with operating, simultaneously, the TDMA network and the GSM network, thus pressuring margins. ARPU declines have been caused by lower roaming revenues and migration to lower price plans.

There is still some uncertainty as to the resolution of the company's partnership with Cingular Wireless, which acquired a 19.9% stake in CBW through the acquisition of AT&T Wireless. The two companies have taken positive steps to resolve future ownership and roaming arrangements. The companies have agreed to a put/call arrangement effective in September 2005 that could result in CBB acquiring Cingular's stake for $83 million and modified the roaming arrangement so that EBITDA levels for CBW were largely preserved. Should the purchase transaction take place, the valuation is an attractive price for CBW as it is about 5 times (x) EBITDA. The five-year term of the roaming arrangement provides for additional stability in CBW's operations. CBB has stated that it would like Cingular to ultimately form a long-term relationship with CBW, and anticipates entering discussions with Cingular prior to the September 2005 put/call date.

CBB's 'B+' senior unsecured rating reflects the subordination to the company's senior secured debt and the CBT notes. At the end of the third quarter of 2004, approximately $789 million of debt was senior to CBB's senior unsecured debt. The notching of the senior secured debt above the senior unsecured debt is indicative of the anticipated recovery by the senior secured debt holders and their first-priority claim on the economic interests of CBT and CBW.

CBB reported total debt outstanding of $2.186 billion as of the end of the third quarter 2004, a reduction of approximately $102 million from year-end 2003. Bank debt totaling $489 million accounts for approximately 22% of total debt. Fitch estimates that the company has approximately $378 million of additional capacity remaining under its revolver as of Sept. 30, 2004. The capacity on the revolver begins to amortize March 30, 2005, when the first of four quarterly reductions of $30.8 million occurs. The remaining $273.5 million in capacity amortizes on March 1, 2006. As of Sept. 30, 2004, CBB also has $470 million outstanding on the term loan facility that matures on June 30, 2008. CBB is expected to reduce debt by approximately $140 million in 2004 through free cash flows.