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EarthLink Inc.
Standard & Poors, May 2011
Abstract
Benefits from the larger scale with acquisitions, which will provide potential for better profit margins; Moderate expected leverage of around 2.5x for 2011; and Likely to continue to generate net free cash flow after capital expenditures and dividends over the next few years. Business communications services is a highly competitive, fragmented market; Declining base of business in the consumer Internet access segment; Integration risk because integrating ITC and One Communications could be challenging and prompt customer service issues that could accelerate overall churn; and Contracts renewals could be subject to some pricing pressures as competitors become aggressive in the market. The ratings on EarthLink Inc. reflect the highly competitive nature of the business-oriented telecom markets in which it operates and...
Companies mentioned in this report are: EarthLink Inc.,ITC DeltaCom Inc.,Broadview Networks Holdings Inc.,PAETEC Holding Corp.,Vonage Holdings Corp.
Action: Review
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
Research Type: Full Analysis
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