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NEW YORK-Moody’s Investor Services assigned a Caa1 rating to AirGate PCS Inc.’s recently issued 9.375 percent senior subordinated secured notes due 2009 and a B2 rating for the carrier’s $141 million secured credit facility. Moody’s also placed a stable rating outlook for AirGate noting that while the carrier still faces operational challenges, it has “comfortably reduced” its near-term financial risks through its recent restructuring efforts and has “adequate liquidity to meet its obligations over the medium-term.”
Moody’s also cited the upcoming nationwide implementation of local number portability and AirGate’s continued rocky relationship with network partner and primary vendor Sprint PCS as future challenges for the network affiliate.
