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Technology Stocks : Winstar Comm. (WCII)
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To: TheSlowLane who wrote (937)3/12/1997 8:52:00 PM
From: Ross Abrams   of 12468
 
S & P's write up from today:

(Press release provided by Standard & Poor's)

NEW YORK, March 12 - Standard & Poor's today has assigned
its triple-C'-plus rating to WinStar Communications Inc.'s
(WinStar) $100 million senior deferred interest notes due 2005
and its triple- C' rating to the company's $150 million senior
subordinated deferred interest notes due 2007.

In addition, Standard & Poor's has assigned its
triple-C'-plus rating to WinStar Equipment Corp.'s $200 million
guaranteed senior secured notes due 2004. WinStar Equipment is
a wholly owned subsidiary of WinStar.
The corporate credit rating for WinStar Communications is
single-B'- minus.

WinStar Equipment's guaranteed notes will be secured by
liens on certain designated equipment, however the value of
this collateral will be substantially less than the amount of
the notes. Ratings reflect the high risk associated with
WinStar's planned entry into the competitive local exchange
carrier (CLEC) business against much larger and better financed
competitors and WinStar's substantial capital spending
requirements.
WinStar is the largest holder of 38GHz spectrum in the U.S.

and including pending acquisitions, its licenses will cover an aggregate population of 180 million. While 38GHz technology allows rapid deployment of large amounts of bandwidth, requirements for line-of-sight transmission and relatively short range limit its application.

Outlook: Stable.

WinStar is a relatively new venture that has, to date, generated only minimal revenues from both its CLEC and carrier businesses. The company will compete against the established local exchange carriers, in addition to a host of new competitive access providers and competitive local exchange carriers. However, prefunding of a significant share of build-out requirements combined with cash interest deferral on a portion of the company's debt provide some measure of near-term bondholder protection, Standard & Poor's said.

16:42 03-12-97
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