S&P rates MetroPCS notes B

Standard & Poor's said it assigned MetroPCS Wireless Inc.'s proposed $500 million senior unsecured notes due 2020 its issue-level rating of B with 4 recovery rating, indicating expectation of 30% to 50% recovery.

The corporate credit rating on parent MetroPCS Communications Inc. is B.

The outlook is positive.

Proceeds will be used to call and redeem $451 million of existing 9¼% senior notes due 2014 and for general corporate purposes.

The company's leverage, which was about 4.4x on a rolling-12-month basis including adjustments through Sept. 30, net of anticipated debt repayments, will not change as a result of this transaction, although the refinancing will modestly improve the company's overall interest costs, according to the agency.

The rating reflects a challenging business model that targets lower income customers, a highly competitive environment and aggressive debt leverage, S&P said.

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