Recovery Report: MetroPCS Communications Inc.'s Recovery Rating Profile Mar 11

  • ID: 1873492
  • March 2011
  • Standard & Poors
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Standard & Poor's Ratings Services has updated its recovery analysis on Richardson, Texas-based wireless provider MetroPCS Communications Inc.'s (MetroPCS) to reflect the reduced size of the B-3 senior secured term loan that subsidiary MetroPCS Wireless recently completed. Our issue-level and recovery ratings remain unchanged. The company intends to use the proceeds from the new $500 million term loan for general corporate purposes, including opportunistic spectrum acquisitions. Our simulated default scenario contemplates intense price-based competition, primarily from larger national wireless carriers, resulting in elevated churn, margin compression, and ultimately a payment default. The loan agreement will allow the company to incur additional pari passu or junior secured debt loans subject to certain conditions up to an amount the greater of $500...

Companies mentioned in this report are: MetroPCS Communications Inc.,MetroPCS Wireless Inc.

Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.

Research Type: Full Analysis

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MetroPCS Communications Inc.,MetroPCS Wireless Inc.

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