Fitch rates Nextel notes BB-

Fitch Ratings assigned a BB- rating to Nextel Communications, Inc.'s new $500 million senior redeemable 10-year notes. Nextel Finance Co.'s senior secured bank facility is rated BB+ and Nextel's preferred stock is rated B. The outlook remains positive.

Fitch said Nextel's rating reflects the company's excellent progress in deleveraging its balance sheet using excess cash from operations, open market purchases, debt refinancing and the issuance of equity over the last several quarters thereby reducing its interest and preferred dividend obligations.

Moreover, operational trends are positive, as Nextel has for the second time exceeded financial and operational targets set for 2003.

Fitch said it believes Nextel's new financial guidance is achievable and includes positive free cash flow of at least $1 billion (up from $600 million), operating income before depreciation and amortization (OIBDA) of at least $4.1 billion (up from $3.9 billion) and net additions of at least 2.2 million (up from 1.9 million).

Fitch expects Nextel to continue pursuing further improvements to its capital structure utilizing its free cash flow, excess liquidity cushion and opportunistic equity and debt issuances to refinance Nextel's highest cost debt.

Even though Fitch expects Nextel's positive operating trends to continue over the near-term, challenges and risks remain which could moderate the pace of anticipated credit profile improvement. Shorter-term issues include the decision by the Federal Communications Commission on the 800 MHz consensus plan and industry cost impacts associated with wireless number portability. From an intermediate to longer-term perspective, the concerns include the competitive threats to Nextel's Direct Connect offering, fundamentals supporting the wireless industry, potential funding requirements of the 800 MHz consensus plan and technical viability of the iDEN platform.

S&P says Calpine unchanged

Standard & Poor's said Calpine Corp.'s ratings are unchanged including its corporate credit at B with a negative outlook in response to the company's plan to build, own and operate a 525 MW power plant in Mexico.

S&P described the proposal as slightly credit positive. Calpine will supply two combustion gas turbines from its inventory to the project, giving the company a 45% interest in the facility. Therefore, the project will add contractually based revenues to Calpine's portfolio without depleting cash and diminishing Calpine's liquidity.

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