Los Angeles-based competitive telecommunications provider U.S. TelePacific Holdings Corp.'s proposed transaction to be acquired by special-purpose acquisition company Pensare Acquisition Corp. did not proceed as planned. We believe there is a high degree of uncertainty related to the exit strategy of TelePacific's current private equity sponsors, which could include a sale to another sponsor or strategic buyer and result in higher leverage. We are revising our CreditWatch placement for the ratings on TelePacific, including the 'B' issuer credit rating, to CreditWatch negative from CreditWatch positive. The revised CreditWatch placement reflects the potential for a one-notch downgrade given the uncertainty regarding the sale of U.S. TelePacific Holdings Corp. (TelePacific) to another buyer as we believe that its existing private equity sponsors
