S&P rates Leap Wireless notes CCC

Standard & Poor's said it assigned a CCC rating to Leap Wireless International Inc.'s proposed $200 million of convertible senior notes due 2014, with a 6 recovery rating.

The agency also assigned a B- rating to funding unit Cricket Communications Inc.'s proposed $200 million of senior notes due 2015 with a 4 recovery rating.

Leap's B- corporate credit rating was affirmed.

The outlook is stable.

Proceeds will be used for working capital and other general corporate purposes.

"While this funding will increase the company's leverage from about 5.7 times on an last-12-month basis as of March 31, 2008, to the 7 times area, we have already taken this leverage degradation into account for the rating given our expectations that the company would need to raise more debt to fund new market buildouts," S&P analyst Catherine Cosentino, said in a written statement.

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