Moody's rates U.S. Cellular notes Ba1

Moody's Investors Service said it assigned a Ba1 rating to United States Cellular Corp.'s planned offering of senior unsecured notes. U.S. Cellular's other ratings and outlook remain unchanged.

U.S. Cellular is 82% owned by Telephone and Data Systems, Inc. “The instrument ratings reflect both the probability of default of TDS, as reflected in the Ba1-PD probability of default rating, an average expected family recovery rate of 50% at default and the loss given default (LGD) assessment of the debt instruments in the capital structure based on a priority of claims,” Moody’s said in a press release.

U.S. Cellular is expected to use a portion of the proceeds to redeem some or all of the company's outstanding 7¼% senior notes due 2064, with the remainder, if any, to be used for general corporate purposes which may include the repayment of other debt, the purchase of additional spectrum and the funding of capital investments, including in connection with 5G buildout projects.

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