Morgan Stanley & Co. media analyst Rich Bilotti upgraded Adelphia Communications Corp. to "strong buy" from "outperform" last week, after the company reported its third-quarter results. In a research note, Bilotti projected lower debt leverage and accelerating fundamental growth. In conjunction with its third-quarter results, Adelphia reported that it would spin off its competitive local-exchange carrier subsidiary — Adelphia Business Solutions Inc. — by the first quarter, removing about $1.4 billion in debt from the MSO's books. Adelphia estimated the spinoff would lower its leverage from 7.5 times to 6.5 times cash flow. "We think the valuation is attractive," Bilotti wrote.