FairPoint Communications, Inc. -- Moody's assigns B2 ratings to FairPoint's new debt

New York, January 30, 2013 -- Moody's Investors Service has assigned B2 (LGD 4-57%) ratings to FairPoint Communications Inc's ("FairPoint" or the "Company") proposed $300 million senior secured notes due 2020 and $725 million senior secured credit facility which consists of a $650 million senior secured term loan due 2019 and a $75 million senior secured revolver due 2018. The proceeds will be used to repay the company's existing credit facility, the ratings of which will be withdrawn by Moody's upon a successful refinancing. The transaction is not expected to result in lower interest expense for the company but will allow it to extend its debt maturity into later years. Moody's has also upgraded FairPoint's probability of default rating (PDR) to B2-PD from B3-PD to reflect the lower probability of default resulting from a mixture of bank debt and bonds in the capital structure upon the refinancing. The rating outlook is stable.

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