Windstream 2014 Annual Report Download - page 139

F-23
Credit Ratings
As of February 20, 2015, Moody’s Investors Service, Standard & Poor’s Corporation (“S&P”) and Fitch Ratings had granted the
following senior secured, senior unsecured and corporate credit ratings:
Description Moody’s S&P Fitch
Senior secured credit rating (a) Ba2 BB+ BBB-
Senior unsecured credit rating (a) B1 B BB
Corporate credit rating (b) Ba3 BB- BB
Outlook (b) Stable Stable Stable
(a) Ratings assigned to Windstream Corp.
(b) Corporate credit rating and outlook assigned to Windstream Corp. for Moody’s and Fitch, while S&P assigns corporate
credit rating and outlook to Windstream Holdings, Inc.
Factors that could affect our short and long-term credit ratings would include, but are not limited to, a material decline in our
operating results, increased debt levels relative to operating cash flows resulting from future acquisitions, increased capital
expenditure requirements, or changes to our dividend policy. If our credit ratings were to be downgraded, we might incur higher
interest costs on future borrowings, and our access to the public capital markets could be adversely affected.
Our exposure to interest risk is further discussed in the Market Risk section below. A downgrade in our current short or long-term
credit ratings would not accelerate scheduled principal payments of our existing long-term debt.
Off-Balance Sheet Arrangements
We do not use securitization of trade receivables, affiliation with special purpose entities, variable interest entities or synthetic
leases to finance our operations. Additionally, we have not entered into any arrangement requiring us to guarantee payment of
third party debt or to fund losses of an unconsolidated special purpose entity.
Contractual Obligations and Commitments
Set forth below is a summary of our material contractual obligations and commitments as of December 31, 2014:
Obligations by Period
(Millions)
Less than
1 Year
1 - 3
Years
3 - 5
Years
More than
5 years Total
Long-term debt, including current maturities (a) $ 717.5 $ 1,665.2 $ 1,443.6 $ 4,802.1 $ 8,628.4
Interest payments on long-term debt obligations (b) 524.8 1,000.3 723.1 693.3 2,941.5
Capital leases (c) 29.4 24.5 1.0 1.9 56.8
Other lease obligations (d) 6.3 13.2 14.0 92.0 125.5
Operating leases (e) 120.4 184.3 130.1 220.8 655.6
Purchase obligations (f) 393.9 229.8 2.8 0.9 627.4
Other long-term liabilities and commitments (g) (h)
(i) (j) (k) 382.3 588.9 621.9 902.6 2,495.7
Total contractual obligations and commitments $ 2,174.6 $ 3,706.2 $ 2,936.5 $ 6,713.6 $ 15,530.9
(a) Excludes $23.3 million of unamortized premiums (net of discounts) included in long-term debt at December 31, 2014.
(b) Variable rates on the senior secured credit facility are calculated in relation to one-month London Interbank Offered Rate
(“LIBOR”) rate which was 0.16 percent at December 31, 2014.
(c) Capital leases include non-cancellable leases, consisting principally of leases for facilities and equipment.
(d) Other lease obligations consist of amounts due under agreements to leaseback certain company-owned real property that
had been contributed to the Windstream Pension Plan in 2014.