Cincinnati Bell Inc, Cincinnati, Ohio-based local phone company, has taken a hit from Moody’s Investors Service Inc, which has downgraded the company’s senior long-term debt rating to A2 from A1, citing the continuing difficulties in achieving adequate earnings from its diversification strategy. About $225m in long-term debt is affected. Moody’s said Cincinnati Bell’s goal of diversifying its earnings stream away from its regulated telephone operation is centered around the provision of information management and telemarketing by its Cincinnati Bell Information Services unit – The decision to establish an $86m reserve for sale of its CBIS Federal operation highlights challenges the company faces in managing complex software development efforts and implementing expansion plans.
