Monday, May 21, 2007

Alltel bonds hit widest levels this year on buyout

(Reuters) - "The $24.7 billion buyout by Goldman et al will be a blow
to credit quality because of a rise in leverage," according to
Egan-Jones Rating Co. "With a buyout, a 'BB' rating is
reasonable."




Alltel Corp. is rated "A-minus" by Standard & Poor's, which
is four levels above junk. Egan-Jones said its corporate bond
rating for Alltel may slip one notch to "BB," or two levels
below investment-grade, from "BB+" after an agreement to be
bought by TPG Capital and Goldman Sachs for about $25 billion,
Egan-Jones said.


Read more at Reuters.com Mergers News

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