Moody's upgrades Conversent

Moody's Investors Service said it upgraded the corporate family ratings, senior secured revolving credit facility and senior secured term loan of Conversent Holdings Inc. and Mountaineer Telecommunications LLC to B2 from B3. The outlook is developing.

Moody's said the upgrade reflects Conversent's reduced financial risk stemming from improved operating performance, increased free cash flow generation and the resulting reduction in leverage from debt amortization and EBITDA growth. The company's performance was further aided by the cost reductions associated with integrating certain Conversent and Mountaineer operations in 2005.

The developing outlook reflects the announced acquisition of the company by the merging ChoiceOne and CTC competitive telecommunications providers. The purchase price was not disclosed, although Moody's said it expects the existing bank debt at Conversent to be paid in full at closing.

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