S&P affirms iPCS, Horizon PCS

Standard & Poor's said it affirmed its ratings on Sprint PCS affiliate iPCS Inc., including its CCC+ corporate credit rating and CCC senior unsecured debt rating.

The outlook is developing.

S&P said it also affirmed its CCC rating on the senior unsecured debt of another Sprint PCS affiliate, Horizon PCS Inc., following the recently completed merger of Horizon into iPCS Inc.

The rating on the merged company reflects its high business risk profile common to all Sprint PCS affiliates, its below-average EBITDA margin, the negligible net free cash flow generated by the pre-merger iPCS and net free cash flow negative status of Horizon PCS and potential for higher debt leverage in order to support next-generation evolution data only technology, S&P said.

The merged company's weak business position stems from the fact that a material amount of its revenue mix is dependent on roaming, which can be volatile, the agency said.

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