Ratings agency Standard & Poors has downgraded One Communications yet again, citing concerns over the CLECs ability to meet its near-term financial covenants.
S&P three months ago changed Ones credit rating to a B- from a B; on Wednesday, it went a step further and placed One at CCC+. Analysts left room for the possibility that they could raise or lower Ones ratings later.
Earlier this year, S&P changed its view of One because of the CLECs legal fight with Verizon Communications Inc. over access charges, as well as continued deteriorating operational and financial performance. Indeed, One has had a hard time keeping up amid a weak economy and competition from other competitive service providers. The company is privately held so its hard to pin down its earnings. But in a sign of what is likely Ones need to bolster its financials, the operator last week sold its FiberNet business to NTELOS for $170 million in cash.