S&P upgrades MetroPCS

Standard & Poor's said it raised the corporate credit rating on MetroPCS Communications Inc. to BB from B+ and removed all ratings from CreditWatch, where they were placed with positive implications in October 2012.

The outlook is stable.

The agency also said it revised the recovery rating on subsidiary MetroPCS Wireless Inc.'s senior unsecured debt to 3, indicating 50% to 70% expected default recovery, from 5, indicating 10% to 30% expected default recovery.

The entity was renamed T-Mobile US Inc. as a result of a MetroPCS's merger with T-Mobile USA Inc.

S&P also said it raised the rating on this debt to BB from B. This debt is now an obligation of T-Mobile USA Inc., a subsidiary of T-Mobile US Inc.

The agency also said it withdrew the BB rating and 1 recovery rating on MetroPCS Wireless's secured credit facilities, which were repaid at close with proceeds of recent debt issuances.

The combined company has an aggressive financial risk profile, including leverage of about 4.2x, S&P said.

Credit metrics are not expected to improve through at least 2014, the agency said.

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