Fitch Comments on Centennial's Potential Strategic Separation

CHICAGO--(Business Wire)--
After reviewing Centennial Communications Corp.'s (CYCL)
announcement of the potential separation with its U.S. and Puerto
Rican operations, Fitch believes this will have a neutral impact on
the ratings at CYCL and its subsidiaries until more concrete details
emerge over the potential course of action. Nevertheless, if the
company pursued these plans, CYCL would need to redeem all of the
existing debt in its capital structure due to debt covenant
provisions, and separately issue new debt for the U.S and Puerto Rican
operations respectively.

CYCL has indicated operational costs to separate the businesses
are low due to limited operational entanglement and that costs to call
and tender for the existing debt would be approximately $80 million.
CYCL has a good liquidity position through cash on hand, free cash
flow and revolver capacity. Near-term maturities are minimal. At the
end of its fiscal year (FY) 2008, CYCL reported $105 million in cash
and expects to generate approximately $90 million in free cash flow in
FY2009. CYCL's $150 million revolving credit facility is undrawn and
matures in 2010.

CYCL is under no commitment or time limit to complete this
potential separation nor has the company incurred material costs on
other strategic option reviews.

Fitch's rating definitions and the terms of use of such ratings
are available on the agency's public site, www.fitchratings.com.
Published ratings, criteria and methodologies are available from this
site, at all times. Fitch's code of conduct, confidentiality,
conflicts of interest, affiliate firewall, compliance and other
relevant policies and procedures are also available from the 'Code of
Conduct' section of this site.

Fitch Ratings, Chicago
Bill Densmore, 312-368-3125
Mike Weaver, 312-368-3156
Brian Bertsch, 212-908-0549
(Media Relations, New York)

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