Updated at 4:42 p.m., Friday, May 18, 2007
Moody's downgrades rating on Hawaiian Telcom bonds
Advertiser Staff
Moody's Investors Service has downgraded Hawaiian Telcom Communications Inc. bonds, saying the company's ability to increase revenue and profit has been damaged because of its previous customer service problems.The ratings agency lowered ratings to B2 from B1 and assigned a Ba3 rating to proposed refinancing and new loans. It said the outlook for the rating was stable.
Moody's said the downgrade reflected its view that Hawaiian Telcom's system problems in 2006 weakened the company's long-term competitive position. Because of that "the company's ability to grow revenues and improve earnings and cash flow has been seriously damaged as a result of the relatively long stretch of very poor customer service," Moody's said.
