S&P rates Data Transmission loan B+

Standard & Poor's said it assigned its B+ ratings and recovery rating of 3 to Data Transmission Network Corp.'s planned $175 million senior secured credit facilities. At the same time, S&P assigned its B+ corporate credit rating to the company.

The outlook is stable.

The credit facilities consist of a $20 million five-year revolver and a $155 million seven-year tranche B term loan. Proceeds will be used to refinance the company's outstanding debt.

S&P said the ratings on Data Transmission Network reflect the company's high level of business risk resulting from the uncertainty over management's ability to stabilize revenues over the intermediate term and gradually grow them by increasing sales to the existing subscriber base. These factors are tempered by a strong financial profile for the rating category, leading market positions, fairly predictable revenues, and modest required debt amortization.

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