CAWS - Wireless Cable (New and Improved) Message Board

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Technology Stocks : CAWS - Wireless Cable (New and Improved)

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To: .com who wrote (856)	12/9/1996 10:22:00 AM
From: Stanley L Brown	of 5812

Scott, What will this mean long term? 12/09 09:18-PR: DCR Downgrades CAI Wireless Systems Inc.'s Credit Rating, Maintains Rating Watch--Down Status CHICAGO, Dec. 9 /PRNewswire/ -- Duff & Phelps Credit Rating Co. (DCR) has lowered the rating of CAI Wireless Systems Inc.'s senior notes from `BB-' (Double-B-Minus) to `B' (Single-B). The rating will remain on Rating Watch-- Down pending the final outcome of the business relationship (BR) amendment process with Bell Atlantic and NYNEX (BANX). The new rating considers the impact of current implementation delays and increased uncertainty regarding the complete implementation of the BR with BANX. Delays in implementing digital multichannel, multipoint distribution (MMDS) cable television systems, the increasingly successful direct broadcast satellite (DBS) market penetration, and published reports that indicate BANX is considering partnering with a DBS service provider have decreased DCR's confidence level that the BR will be completed as originally structured. Positively, CAI owns valuable frequency spectrum that can be used for both MMDS services and high-speed data interconnectivity. CAI has successfully shown that MMDS frequencies can be used to achieve Internet interconnectivity speeds at least comparable with hard-wired cable. Absent the BR, CAI's credit quality is weak for the `B' (Single-B) rating category. It is possible that DCR could take further rating action if the BR is not resolved. CAI operates MMDS cable television systems in 14 markets concentrated in the mid-Atlantic and northeast regions of the United States. MMDS delivers video signals to homes using microwave towers and its service territory is defined by all homes that are in line of sight of the tower or one of its repeaters. CAI reported six-month ended (September 30) revenues of $18.5 million.. SOURCE CAI Wireless Systems Inc. -0- 12/09/96 /CONTACT: Michael L. Weaver, 312-368-3156 or weaver@dcrco.com, or John C. Culver, CFA, 312-368-3216 or culver@dcrco.com, both of DCR/ (CAWS) CO: CAI Wireless Systems Inc. ST: IN: TLS SU: RTG Stan

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