Bell Atlantic Corp and Nynex Corp each got an instant vote of approval for their plan to merge their cellular operations, with Moody’s Investors Service Inc, Standard & Poor’s Corp and Duff & Phelps Credit Rating Co all leaping to confirm all their existing ratings. Moody’s however added that the joint venture’s goal to establish a nationwide wireless service could require significant capital investment, which could, in turn, have negative implications for debt ratings in the future although if partners are added to the joint venture, and the cost of developing the national network is spread over these partners, any negative impact on the risk profiles of Nynex and Bell Atlantic may be mitigated. Standard & Poor’s said the plan would have no near-term impact on credit quality and that conversion of outright ownership of individual cellular units into equity positions of comparable value in a single venture does not change the fundamental economics of the companies’ investments.
