S&P downgrades Hawaiian Telecom

Dec 07, 2005

Standard & Poor's Wednesday lowered its corporate rating for Hawaiian Telcom to B from B plus.

The credit-rating agency also lowered its debt rating to CCC plus from B plus.

"The downgrades reflect pressure on credit protection measures because of the additional expense associated with the recently announced delay in transitioning back office operations from Verizon Communications to BearingPoint, the service provider chosen by Hawaiian Telcom to build and operate its back office systems," credit analyst Susan Madison said in a news release.

S&P added that "the downgrades also reflect the impact of a heightened competitive environment. While Hawaiian Telcom can absorb the increased expenses associated with the two-month extension of the transition services agreement with Verizon, the credit watch recognizes that an extension beyond April 1, 2006, would cost approximately $20 million per month, and could result in a further downgrade. Hawaiian Telcom is an independent local exchange provider providing integrated communications services to approximately 651,000 switched access lines through the State of Hawaii. Total debt outstanding at Sept. 30, 2005, was approximately $1.3 billion."

Copyright 2005 by United Press International

Explore further: Apple's fiscal 3Q earnings top analyst forecasts

add to favorites email to friend print save as pdf

Related Stories

How Kindle Unlimited compares with Scribd, Oyster

32 minutes ago

Amazon is the latest—and largest—company to offer unlimited e-books for a monthly fee. Here's how Kindle Unlimited, which Amazon announced Friday, compares with rivals Scribd and Oyster.

NASA sees powerful thunderstorms in Tropical Storm Matmo

55 minutes ago

Strong thunderstorms reaching toward the top of the troposphere circled Tropical Storm Matmo's center and appeared in a band of thunderstorms on the storm's southwestern quadrant. Infrared imagery from NASA's ...

ISS 'space truck' launch postponed: Arianespace

3 hours ago

The July 24 launch of a robot ship to deliver provisions to the International Space Station has been postponed "for a few days", space transport firm Arianespace said Friday.

Bible museum planned for US capital

3 hours ago

The devout Christian family that upended a part of President Barack Obama's health care law aims to open a Bible museum in Washington in 2017, a spokesperson for the project said Friday.

Recommended for you

Apple's fiscal 3Q earnings top analyst forecasts

9 hours ago

Apple's growth prospects are looking brighter as anticipation builds for the upcoming release of the next iPhone, a model that is expected to cater to consumers yearning for a bigger screen.

Putin signs law seen as crimping social media

10 hours ago

President Vladimir Putin on Tuesday signed a law requiring Internet companies to store all personal data of Russian users at data centres in Russia, a move which could chill criticism on foreign social networking ...

User comments : 0