S&P raises T-Mobile US

S&P said it raised its issuer and senior unsecured debt ratings for T-Mobile US Inc. to BBB from BBB-. The agency also boosted the issue-level ratings on the unsecured debt at Sprint Corp. and Sprint Capital Corp. to BBB-, one notch below the issuer-credit rating, from BB+.

“The ratings upgrade reflects our view that T-Mobile's business profile has improved materially since its acquisition of Sprint in 2020. T-Mobile has demonstrated solid execution on the integration of Sprint's network assets, including realizing $6 billion of run-rate synergies as of year-end 2022 and continued strong operating momentum. We believe that integration risk has largely abated.

“The billing system migration is the last phase of the combination, and our base-case forecast assumes the company achieves about $7.5 billion of run-rate synergies by the end of 2023 and $8 billion by 2024,” S&P said in a press release.

The outlook is stable.

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