S&P: MetroPCS outlook negative

Standard & Poor's said it revised its outlook on MetroPCS Inc. to negative from positive.

S&P currently rates MetroPCS' corporate credit rating and senior unsecured debt CCC+.

The outlook revision reflects two concerns, according to S&P. First, the company is rapidly approaching the Nov. 8 deadline for filing its second-quarter SEC form 10-Q in order to avoid triggering a technical default, which could result in acceleration in repayment of about $150 million of 10.75% senior notes due 2011. Such acceleration could lead to a liquidity issue in the near term.

Second, an accounting problem may be wider in scope than initially expected by S&P, given that the company recently fired its principal accounting officer and announced that previously issued financial statements for the years ended in December 2002 and 2003 and subsequent interim period should not be relied upon. The accounting problem and any associated internal control issue could lead to regulatory ramifications.

© 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.