Fitch drops Sprint Nextel to junk

Fitch Ratings said it downgraded and placed on Rating Watch negative Sprint Nextel Corp.'s issuer default rating and senior unsecured notes to BB+ from BBB- and its short-term issuer default rating to B from F3 and commercial paper to B from F3.

The agency also lowered Sprint Capital Corp.'s issuer default rating to BB+ from BBB- and senior unsecured notes to BB+ from BBB-; Nextel Communications Inc.'s issuer default rating to BB+ from BBB- and senior unsecured notes to BB+ from BBB-; US Unwired Inc.'s issuer default rating to BB+ from BBB- and second priority secured notes to BB+ from BBB-; Alamosa Delaware Inc.'s issuer default rating to BB+ from BBB- and senior unsecured notes to BB+ from BBB-.

Fitch said the downgrade reflects expectations that the company's financial metrics and operating results for 2008 will be much worse than expected.

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