Moody's rates Airgate notes, loan

Moody's Investors Service said it assigned a Caa1 rating to the recently issued $160 million 9.375% senior subordinated secured notes due 2009 of Airgate PCS Inc. and assigned a B2 rating for the company's $141 million secured credit facility.

The outlook is stable.

Moody's said the B3 senior implied rating reflects the continued high leverage of the company even after its recently completed financial restructuring, as free cash flow will remain a mid-to-low single digit percentage of total debt, and debt per subscriber is above $800.

The stable outlook reflects Moody's opinion that while operational challenges remain, Airgate has comfortably reduced its near-term financial risks through the restructuring, and further that the company has adequate liquidity to meet its obligations over the medium-term.

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