Fitch affirms Telephone and Data, U.S. Cellular

Fitch Ratings said it affirmed the BB+ long-term issuer default ratings for Telephone and Data Systems, Inc. and its subsidiary United States Cellular Corp.

In addition, the agency affirmed the BB+/RR4' senior unsecured debt ratings for both companies.

U.S. Cellular’s ratings consider the consolidated ratings at Telephone and Data.

The outlook remains stable.

Fitch said the ratings incorporate the smaller size of Telephone and Data's main operating unit – U.S. Cellular – in a market dominated by four national wireless operators.

This concern is mitigated by Telephone and Data's financial flexibility, arising from its low leverage and healthy liquidity position.

For the year ended Dec. 31, 2017, U.S. Cellular posted 36,000 net subscribers postpaid additions versus 73,000 net additions in the corresponding period last year, largely due to lower gross ads and higher churn in the connected devices, the agency explained.

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