Moody's ups MetroPCS notes to B3, loans to Ba2

Moody's Investors Service said it changed the outlook MetroPCS Wireless Inc. to positive from stable and affirmed the B2 corporate family and probability-of-default ratings, and the SGL-1 liquidity rating.

The agency upgraded the $1.4 billion 9¼% senior unsecured notes due 2014 to B3 (LGD5, 77%) from Caa1 (LGD5, 79%), which include the announced $300 million add-on, and the $1.7 billion senior secured bank facility to Ba2 (LGD2, 21%) from Ba3 (LGD2, 25%).

The actions follow the company's plans to issue an additional $300 million of 9¼% senior unsecured notes, which will provide additional resources to sustain the company's growth, according to the agency.

The most likely use for funds will be additional spectrum purchases or select acquisitions, with the added liquidity cushion notably bolstering the company's overall credit profile over at least the near-to-intermediate term period, Moody's said.

The upgrade of the senior secured debt was driven by the greater loss absorption supplied by the greater proportion of senior unsecured debt in the capital structure, the agency noted.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.