77.7 F
Charlotte Amalie
Sunday, April 14, 2024
HomeNewsArchivesStandard & Poor's: ICC is 'High-Risk Credit'

Standard & Poor's: ICC is 'High-Risk Credit'

Nov. 11, 2004 – During Wednesday's meeting of the Public Services Commission, Joel Holt, attorney for Innovative Communications Corp., said its long-time lender, the Rural Telephone Finance Cooperative, was suing ICC because "RTFC wants to liquidate Vitelco to solve [its] own financial problems." He added that ICC was "probably one of the most solvent companies in the Virgin Islands." (See "Various Lawsuits Remain Unsettled for ICC ").
RTFC attorney Eric Cowan responded at the meeting that the cooperative's financial standing could be easily determined by examining its Securities and Exchange Commission filings.
Since ICC is privately held, it has no obligation to file financial reports with the SEC, but it has come to the Source's attention that Standard & Poor's, the nation's leading credit-rating agency, released a bulletin in August that said, in part: "Standard & Poor's has always considered Innovative Communications to be a high-risk credit among CFC's top-10 borrowers."
S&P issued its August bulletin in the wake of RTFC's suit against ICC in federal court for allegedly breaching loan and security agreements, writing "[the suit] is unfavorable for credit quality but does not affect the rating or outlook on CFC." At the time S&P confirmed its earlier rating of CFC, A/Stable/A-1.
Industry sources say that S&P has been quietly following the ICC/CFC relationship for years, and while S&P has warned before, in general terms, about the cooperative's exposure to its 10 largest borrowers, particularly those among the top 10 in telecommunications, it has never mentioned ICC by name until the Aug. 4 bulletin. ICC, a telecommunications firm, has been one of the top 10 for years.

Back Talk

Share your reaction to this news with other Source readers. Please include headline, your name and city and state/country or island where you reside.

Print Friendly, PDF & Email
Keeping our community informed is our top priority.
If you have a news tip to share, please call or text us at 340-228-8784.

Support local + independent journalism in the U.S. Virgin Islands

Unlike many news organizations, we haven't put up a paywall – we want to keep our journalism as accessible as we can. Our independent journalism costs time, money and hard work to keep you informed, but we do it because we believe that it matters. We know that informed communities are empowered ones. If you appreciate our reporting and want to help make our future more secure, please consider donating.

UPCOMING EVENTS