S&P rates Clearwire notes CCC

Standard & Poor's said it assigned its CCC issue-level rating and 4 recovery rating to the proposed $300 million senior secured first-lien notes due 2017 to be issued by Clearwire Communications LLC and Clearwire Finance Inc., direct and indirect subsidiaries, respectively, of Clearwire Corp.

At the same time, the agency said it revised the recovery rating on the company's existing senior secured first-lien debt to 4 from 3. S&P said the change in the recovery rating results from the diluted recovery prospects associated with the higher secured debt balance.

The agency said the CCC corporate credit rating on Clearwire Corp. is unchanged, as is the developing outlook. While the additional funding, combined with the recent equity offering, allows Clearwire to avoid a near-term restructuring, S&P said it still views the company's liquidity as "weak."

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