Posted at 10:30 a.m., Thursday, August 23, 2007
S&P lowers Hawaiian Telcom outlook to negative
Advertiser Staff
Standard & Poor's Ratings Services today lowered its outlook on Honolulu-based Hawaiian Telcom Communications Inc. to negative from stable because of continuing operational difficulties.S&P reiterated its "B-" credit rating, however, the outlook change means an increased likelihood of a future rating downgrade. That could result in higher debt costs for Hawaiian Telcom.
"Ongoing billing and back-office system delays, combined with heightened competition in Hawaii for voice and data telecommunication services, resulted in greater-than-expected residential voice access-line and digital subscriber line losses in the second quarter of 2007," said S&P's credit analyst Susan Madison in a news release.
Hawaiian Telcom is Hawai'i's major phone company. The company was purchased by The Carlyle Group in 2006.
