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Research Update: Sprint Nextel Corp.'s Ratings Placed On CreditWatch Due To Subscriber Losses Feb 08
Standard & Poors, February 2008
On February 28, 2008, Standard & Poor's Ratings Services placed its 'BBB-' corporate credit rating and all other ratings on Sprint Nextel Corp. on CreditWatch with negative implications following the company's announcement that it expects to report EBITDA of $1.8 billion to $1.9 billion in the first quarter of 2008 because of post-paid subscriber losses, which are expected to be around 1.2 million and are unlikely to improve in the second quarter. The erosion in Sprint Nextel's subscriber base and the resultant decline in EBITDA are substantially higher than we anticipated and the company's business profile is probably no longer supportive of an investment-grade rating. Additionally, Sprint Nextel said it will draw $2.5 billion of the approximately $3 billion available...
Companies mentioned in this report are: Sprint Nextel Corp.,Sprint Capital Corp.,Nextel Communications Inc.,Nextel Finance Co.,UbiquiTel Inc.,UbiquiTel Operating Co.
Action: On CreditWatch:Negative
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.
Product Type: Research Update
Research updates complement media releases. They offer more depth and detail than summary analyses by incorporating all information published in the media release. They are more up to date than summaries in that they are published simultaneously with media releases.
Sprint Nextel Corp.,Sprint Capital Corp.,Nextel Communications Inc.,Nextel Finance Co.,UbiquiTel Inc.,UbiquiTel Operating Co.