Risk-to-Price Commentary: American Tower Corp. And Sprint Capital Corp. Nov 10
- ID: 2084429
- November 2010
- Region: United States
- Standard & Poors
Shares in Clearwire Corp. continued to decline Wednesday, one week after the company in an SEC filing put into doubt its ability to raise additional capital and continue as "a going concern." On Tuesday, Standard & Poor's Ratings Services lowered its corporate credit rating on the company to 'CCC' from 'B-'. Clearwire, Standard & Poor's noted, expects to run out of cash in the middle of next year. "Although Clearwire is initiating several cost-reduction measures, we still expect that its cash balances will reach dangerously low levels in early 2011 given its substantial capital requirements and operating losses to support the network deployment," the agency said. Shares in Sprint Nextel Corp., which owns a 54% stake in Clearwire, also continued...
Companies mentioned in this report are:
- Sprint Nextel Corp.
- Sprint Capital Corp.
- United States Cellular Corp.
- American Tower Corp.
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: Commentary
Criteria articles describe the thought process and methodology Standard & Poor's analysts use in determining ratings. These commentary pieces discuss both the quantitative (economic and financial) and qualitative (business analysis and caliber of management) aspects of the analysis, as well as legal issues. SHOW LESS READ MORE >