Moody's rates Leap Wireless, Cricket Communications loans B1

Moody's Investors Service said it assigned a B1 senior implied rating to Leap Wireless International Inc. and a B1 rating to the proposed $650 million of senior secured credit facilities available to Cricket Communications Inc. The outlook is stable.

Moody's also assigned a B3 issuer rating and SGL-1 speculative grade liquidity rating to Leap.

Moody's said the ratings on Leap reflect the good financial profile of the company tempered by the uncertain economics of the company's business model over the longer term, its higher sensitivity to general economic conditions and the probability that Leap will seek to expand its business plan over the intermediate term.

The B1 rating on the $650 million of senior secured credit facilities available to Cricket Communications, a subsidiary of Leap Wireless International, reflects the preponderance of these obligations in the company's debt capital base, according to Moody's.

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