Sprint Nextel's ratings placed on Creditwatch negative - S&P |
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Tue, 09 Jan 2007 21:22
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NEW YORK - Standard & Poor's Ratings Services placed its 'BBB+' rating for Sprint Nextel Corp. on CreditWatch with negative implications, affecting about 22 bln usd in outstanding debt.Credit analyst Allyn Arden said: 'The CreditWatch placement follows the company's announcement regarding its outlook for 2007, which includes a significant decline in cash flow and flat revenue growth.'The ratings agency is particularly concerned about the loss of integrated digital enhanced network (iDEN) customers following the merger with Nextel because these represent a sizable, profitable segment of the business.In resolving the CreditWatch, Standard & Poor's will evaluate Sprint Nextel's strategy to mitigate subscriber losses and improve cash flow generation in the face of maturing growth in the wireless industry and significant competition, notably from Verizon Wireless and Cingular Wireless LLC.Standard & Poor's will also discuss with management its financial policy, particularly its plans for the stock repurchase program, in light of the company's operational issues.newsdesk@afxnews.comvb/joyCOPYRIGHTCopyright AFX News Limited 2006. All rights reserved.The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.AFX News and AFX Financial News Logo are registered trademarks of AFX News Limited
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