Item 8.01 Other Events

Series A Bonds Rating - Background

As previously disclosed on a Current Report on Form 8-K dated December 3, 2007, NTS, Inc., f/k/a Xfone, Inc. (the "Registrant") had received a rating letter from Midroog Limited, an Israeli rating company which is a subsidiary of Moody's Investor Services ("Midroog"), assigning a rating of A3 to a bond offering in Israel in connection with the Registrant's financing of its acquisition of NTS Communications, Inc (the "Series A Bonds").

As previously disclosed on a Current Report on Form 8-K dated February 19, 2009, Midroog's annual monitoring report filed with the Tel Aviv Stock Exchange (the "TASE") on February 19, 2009 reaffirmed the A3 rating of the Series A Bonds initially assigned on December 2, 2007, however, Midroog's rating committee decided on a negative outlook on the rating of the Series A Bonds.

As previously disclosed on a Current Report on Form 8-K dated October 26, 2009, Midroog filed with the TASE a monitoring report on October 26, 2009 downgrading the rating of the Series A Bonds from A3 to Baa1, and announcing that the negative outlook on the rating remains in effect.

As previously disclosed on a Current Report on Form 8-K dated November 30, 2009, Midroog filed with the TASE a monitoring report on November 30, 2009 announcing the inclusion of the rating of the Series A Bonds in Midroog's watch list with a negative outlook.

As previously disclosed on a Current Report on Form 8-K dated July 1, 2010, Midroog downgraded the rating of the Series A Bonds from Baa1 to Baa3, announcing that the negative outlook on the rating of the Bonds was replaced with a stable outlook, and removing the rating of the Series A Bonds from Midroog's watch list.

As previously disclosed on a Current Report on Form 8-K dated May 12, 2011, Midroog announced that the stable outlook on the Baa3 rated Series A Bonds was replaced with a negative outlook.

Series A Bonds Rating - Recent Development

On August 6, 2012, Midroog filed with the TASE a monitoring report (the "Report"), downgrading the rating of the Series A Bonds from Baa3 to Ba1 and announcing that the negative outlook on the rating of the Series A Bonds is replaced with a stable outlook.

The Hebrew version of the Report is available on Midroog's website at:
http://www.midroog.co.il/siteFiles/13/463/5957.asp?val=406. The Report will be translated to English, and the Registrant intends to file a Current Report on Form 8-K with the U.S. Securities and Exchange Commission containing an English version of the Report when the translation is available.

Item 9.01 Financial Statements and Exhibits

(a) Not applicable.
(b) Not applicable.
(c) Not applicable.
(d) None.

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