New York, June 17, 2014 -- Moody's Investors Service has downgraded the corporate family rating (CFR) of Neustar, Inc. ("Neustar" or "the company") to Ba3 from Ba2 after the Federal Communications Commission (FCC) issued a public notice seeking comment on the North American Numbering Council's (NANC) recommendation for Telcordia Technologies, Inc. to replace Neustar as the local number portability administrator. Moody's believes that Neustar is now at risk of losing the contract, which accounts for approximately half the company's total revenue. However, the transition timeline is uncertain and is likely to be drawn out beyond the current contract end date, providing an opportunity for Neustar to dedicate cash on hand and cash generated from the remaining service term towards debt repayment.
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