Fitch rates Sprint loan BB+

Fitch Ratings said it affirmed Sprint Corp.’s issuer default rating at B+, along with the issuer default ratings of B+ on wholly owned subsidiaries Sprint Communications Inc. and Clearwire Communications LLC.

Fitch also said it assigned a BB+ rating with recovery rating of RR1 to Sprint's new $3.5 billion senior secured credit facility, which includes a $2 billion four-year senior secured revolving facility and $1.5 billion seven-year secured term loan B.

The outlook is stable.

The ratings are primarily supported by the benefit the group receives from SoftBank's tangible support, which essentially sets a rating floor at B+, Fitch explained.

The agency also said it believes SoftBank's support for Sprint has not changed or lessened.

Fitch said it views the operational and strategic linkages as moderately strong given the extensive operational oversight, while the legal linkages are weak given the lack of any guarantees provided to existing debtholders.

The company’s standalone rating is considered B- and is expected to remain within that range for the next 12 months, given the challenges inherent to Sprint's financial and business profiles and the numerous ongoing strategic initiatives to address these issues, the agency said.

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