Ratings agency Standard & Poor’s has downgraded One Communications yet again, citing concerns over the CLEC’s ability to meet its near-term financial covenants.
S&P three months ago changed One’s credit rating to a ‘B-’ from a ‘B’; on Wednesday, it went a step further and placed One at ‘CCC+.’ Analysts left room for the possibility that they could raise or lower One’s ratings later.
Earlier this year, S&P changed its view of One because of the CLEC’s legal fight with Verizon Communications Inc. over access charges, as well as continued deteriorating operational and financial performance. Indeed, One has had a hard time keeping up amid a weak economy and competition from other competitive service providers. The company is privately held so it’s hard to pin down its earnings. But in a sign of what is likely One’s need to bolster its financials, the operator last week sold its FiberNet business to NTELOS for $170 million in cash.
