Moody's lifts MetroPCS notes

Moody's Investors Service said it assigned a B1 (LGD4, 51%) rating to MetroPCS Wireless, Inc.'s proposed offering of senior notes and upgraded its 7 7/8% senior notes due 2018 and 6 5/8% senior notes due 2020 to B1 (LGD4, 51%) from B2 (LGD5, 75%). The SGL-1 speculative grade liquidity rating was affirmed.

The B1 corporate family rating, B1-PD probability of default rating and B1 note ratings remain on review for upgrade, where they were placed on Oct. 3 when the company announced plans to merge with T-Mobile USA.

The proceeds of the new notes will be used to refinance MetroPCS' $2.5 billion of secured bank debt and for general corporate purposes.

The agency said the upgrade of the existing notes reflects the anticipated change in the capital structure.

MetroPCS' B1 corporate family rating reflects its relatively small scale and high leverage, Moody's said. The rating also recognizes the company's valuable spectrum assets and strong liquidity profile, the agency added.

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