May 30, 2012 / 1:27 PM / 5 years ago

TEXT-S&P summary: EarthLink Inc.

May 30 -

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Summary analysis -- EarthLink Inc. -------------------------------- 30-May-2012

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CREDIT RATING: B/Stable/-- Country: United States

State/Province: Georgia

Primary SIC: Telephone

Communications

Mult. CUSIP6: 270321

Mult. CUSIP6: 602683

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Credit Rating History:

Local currency Foreign currency

16-May-2011 B/-- B/--

20-Dec-2002 NR/-- NR/--

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Rationale

The ratings on EarthLink Inc. reflect the highly competitive nature of the business-oriented telecom markets in which it operates and Standard & Poor’s Ratings Services’ expectations for ongoing substantial revenue and EBITDA declines in its consumer Internet service business. The company also faces possible integration risks, with its acquired telecom service providers ITC DeltaCom and One Communications Inc., which, in our view, could prompt customer service issues and accelerated churn, the latter being an ongoing challenge for all companies in this space. These factors translate into a “vulnerable” business position.

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