Sprint's credit rating gets cut by S&P

As Sprint faces a tough battle ahead against some serious competition in the market, Sprint Nextel Corp.'s corporate credit rating was slashed by Standard & Poor's citing their concern over repeated postpaid customer losses could hurt their revenue. Initially clocking in at a BB grade, Sprint was lowered to BB- which is essentially three spots lower from what they were. If there was some miraculous turn around by the number three wireless carrier in the country, their outlook on credit and debt levels are unlikely to improve dramatically in the short term – even if they were able to really squeeze out from their pockets by cutting costs and subscriber declines. S&P said, “Sprint Nextel’s deteriorating operating and financial performance are the result of several factors, most notably the erosion of its high-margin postpaid-subscriber base at a time when its competitors are experiencing healthy, albeit slowing, customer growth.” Now the really bad part out of all this is the fact that their lower credit rating can really make it tough on them to raise money for their cause. When you look at their stock performance, it may look a bit grim as the stock has declined 11 percent this year. Let's hope that their latest push helps them stop the bleeding and make some kind of turn around before it's too late.

via Sprint Connection