CLEC TelePacifc's credit quality has improved following the successful completion of its refinancing transaction, including improved covenant cushion under the new senior secured credit facility. We are raising the ratings on TelePacific, including the corporate credit rating to 'B-' from 'CCC+' and are removing the corporate credit rating from CreditWatch. We are withdrawing the ratings on TelePacific's $199 million senior secured term loan and $30 million revolver. The stable outlook reflects our expectations for modestly improving operating trends, including lower churn, over the next year. On Feb. 18, 2010, Standard&Poor's Ratings Services raised its ratings, including its corporate credit rating to 'B-' from 'CCC+', on Los Angeles-based competitive local exchange carrier (CLEC) U.S. TelePacific Holdings Corp. The outlook
