US Cellular 2015 Annual Report Download - page 43

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TDS and U.S. Cellular are rated at sub-investment grade. TDS and U.S. Cellular’s credit ratings as of December 31,
2015, and the dates such ratings were issued/re-affirmed were as follows:
Rating Agency Rating Outlook
Moody’s (TDS) (re-affirmed November 2015) Ba2 — negative outlook
Moody’s (U.S. Cellular) (re-affirmed November 2015) Ba1 — negative outlook
Standard & Poor’s (re-affirmed November 2015) BB — stable outlook
Fitch Ratings (re-affirmed August 2015) BB+ — stable outlook
Capital Requirements
The discussion below is intended to highlight some of the significant cash outlays expected during 2016 and beyond
and to highlight the spending incurred in prior years for these items. This discussion does not include cash required to
fund normal operations, and is not a comprehensive list of capital requirements. Significant cash requirements that are
not routine or in the normal course of business could arise from time to time.
Capital Expenditures
TDS makes substantial investments to acquire wireless licenses and properties and to construct and upgrade
telecommunications networks and facilities to remain competitive and as a basis for creating long-term value for
shareholders. In recent years, rapid changes in technology and new opportunities (such as 4G LTE technology in the
Wireless business and fiber in the Wireline business) have required substantial investments in potentially revenue-
enhancing and cost-reducing upgrades to TDS’ networks to remain competitive.
35
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS