Fitch rates U.S. Cellular notes BB+

Fitch Ratings said it assigned a BB+/RR4 rating to United States Cellular Corp.'s proposed offering of senior unsecured notes.

Net proceeds from the offering may be used to repay existing notes and other general corporate purposes, including the purchase of additional spectrum and funding of capital expenditures, including 5G-related spend.

The notes will be senior unsecured obligations and will rank on parity with USM's existing and future senior unsecured obligations.

Telephone and Data Systems, Inc.'s and United States Cellular’s long-term issuer default ratings are BB+.

The outlook is stable.

Fitch said it believes telecommunications is a low-risk sector relative to some other sectors regarding coronavirus impact, as there are recurring payments from subscription-based plans and wireless is generally a high-priority consumer payment.

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