S&P: Leap Wireless still on watch

Standard & Poor's said its rating for Leap Wireless International Inc. (B-/Watch Negative/--) remains on CreditWatch negative despite the company's receipt of waivers from its banks for financial filing requirements, which it received on April 15.

On watch are Leap's B- corporate credit rating and Cricket Communications Inc.'s B- rated $650 million secured bank loan.

On April 5, S&P placed its ratings for Leap and operating subsidiary Cricket Communications Inc. on CreditWatch negative following the company's failure to file its 2004 10-K by its March 31 deadline, which could constitute an event of default.

These waivers, however, represent only a deadline extension and, if the company does not file its annual financial statements by May 16 or is unable to obtain additional bank facility waivers, the ratings could be lowered.

Leap indicated in an SEC filing on April 1 that it has been delayed in filing its 10-K due to its review of its lease accounting practices.

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