NEW YORK (Standard&Poor's) Aug. 21, 2007--Standard&Poor's Ratings Services said today it revised its outlook on Los Angeles-based U.S. TelePacific Holdings Corp. (TelePacific) to positive from stable. At the same time, we affirmed all ratings on TelePacific, a competitive local exchange carrier (CLEC), including the 'B-' corporate credit rating. "The outlook revision on TelePacific reflects improved operating and financial performance since the acquisitions of MPower Communications and Arrival Communications last year," said Standard&Poor's credit analyst Allyn Arden. The purchase of MPower, in particular, eliminated a major CLEC competitor, giving TelePacific almost half the CLEC lines in its markets in generally underserved areas. During this time period, TelePacific's EBITDA margins have expanded to 21% from around
