S&P rates MetroPCS Wireless notes B

Standard & Poor's said it assigned a B rating to MetroPCS Wireless Inc.'s $1 billion 6 5/8 % senior notes due 2020. The recovery rating is 4, indicating 30% to 50% recovery in a default.

The notes are an upsizing from the previously proposed $500 million issue, S&P said.

The proceeds will be used to redeem the $950 million outstanding principal amount of its existing 9¼% senior notes due 2014 and for general corporate purposes.

The outlook is positive.

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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