Telephone & Data Systems Inc has had its Baa3 senior unsecured debt rating placed under review by Moody’s Investors Service Inc for possible downgrade. Approximately $250m in long-term debt is affected. The review is prompted by the uncertainties over the company’s permanent funding strategy for the new Personal Communication Services broadband licences it won, and for construction costs. The Chicago, Illinois company successfully bid for eight licences for an aggregate consideration of $289m. Moody’s noted that debt funding could sharply increase the company’s operating risk profile and weaken its debt-protection measurements.
