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Technology Stocks : CAWS - Wireless Cable (New and Improved) -- Ignore unavailable to you. Want to Upgrade?

To: Zorro who wrote (4933)	4/16/1998 12:24:00 PM
From: Zorro	Respond to of 5812

S&P cuts Heartland Wireless Communications Thursday April 16, 10:32 am Eastern Time (Press release provided by Standard & Poor's) biz.yahoo.com NEW YORK, April 16 - Standard & Poor's today lowered its rating on Heartland Wireless Communications Inc.'s $115 million 13% notes due 2003 and $125 million 14% notes due 2004 to 'D' from single-'B'. The downgrade is based on the company's announcement that it will not make the April 15, 1998 interest payment on the 13% notes. The corporate credit rating is no longer meaningful. Additionally, Standard & Poor's lowered the corporate credit rating of all other wireless cable operators to triple-'C'-plus, reflecting Standard & Poor's belief that the current business of analog transmission of multichannel television signals may not be viable over the near term (see ratings below). Standard & Poor's lowered the corporate credit rating on CS Wireless Systems Inc. to triple-'C'-plus from single-'B' to equalize the rating with that of its 60% owner, CAI Wireless Systems Inc. The outlook of CS Wireless was revised to negative from developing. CS Wireless is also 36% owned by Heartland. The triple-'C'-plus corporate credit rating of CAI Wireless Systems Inc. was affirmed; the outlook remains negative. The corporate credit rating on Wireless One Inc. was lowered to triple-'C'-plus from single-'B'-minus. Wireless One is 20% owned by Heartland. The outlook was revised to negative from developing. The corporate credit rating on American Telecasting Inc. also was lowered to triple-'C'-plus from single-'B'-minus. The outlook was revised to negative from stable. The corporate credit rating of People's Choice TV Corp. was lowered to triple-'C'-plus from single-'B'. The outlook was revised to negative from developing. At this point, Standard & Poor's believes that the current business of analog transmission of multichannel television signals is not competitive with existing cable or direct-to-home (DTH) satellite offerings. The downgrades reflect the combination of lack of subscriber growth in the wireless cable industry, increasing financial pressures as many companies face cash interest payments for the first time over the next year, and the withdrawal of financial support by regional phone companies. Most of the companies faced declining revenue and subscriber levels through 1997. The cross ownership of many of the firms by each other also leads to concerns about lack of financial flexibility. Standard & Poor's recognizes that many wireless cable operators are currently evaluating alternative uses for existing spectrum, including digital service, two-way data transmission, or phone service. However, revenue from these services is not sufficient to cover the existing debt burdens and may lead to further defaults.

To: Zorro who wrote (4933)	4/16/1998 12:25:00 PM
From: Zorro	Read Replies (1) \| Respond to of 5812

RATINGS LOWERED (continued) To From Heartland Wireless Communications Inc. Corp credit rtg N.M. B $115 mil 13% sr unsecd notes due 2003 D B $125 mil 14% sr unsecd notes due 2004 D B CS Wireless Systems, Inc. Corp credit rtg CCC+ B $400 mil 11.375% sr unsecd notes due 2006 CCC- CCC+ Wireless One Inc. Corp credit rtg CCC+ B- $150 mil 13% sr unsecd notes due 2003 CCC+ B- $125 mil 13.5% sr unsecd notes due 2006 CCC+ B- American Telecasting Inc. Corp credit rtg CCC+ B- $183 mil 12.5% sr unsecd notes due 2004 CCC CCC+ $201 mil 14.5% sr unsecd notes due 2005 CCC CCC+ People's Choice TV Corp. Corp credit rtg CCC+ B $175 mil sr unsecd notes due 2004 CCC- CCC+ RATINGS AFFIRMED CAI Wireless Systems, Inc. Corp credit rtg CCC+ $275 12.25% sr unsecd notes due 2002 CCC+