Moody's rates D&E facility Ba3

Moody's Investors Service said it assigned a Ba3 rating to D&E Communications Inc.'s proposed $225 million senior secured credit facilities. The company was also assigned a Ba3 senior implied rating and a SGL-2 speculative grade liquidity rating.

The outlook is stable.

Moody's said the ratings reflect the company's high financial leverage, its line count erosion and the low growth potential that characterizes D&E's business model. However, the ratings also recognize management's seasoned experience in the rural Pennsylvania telephone business, the predictability and defensibility of D&E's rural local exchange operations and the measured approach that management has taken with respect to its CLEC initiatives.

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