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Fitch rates Sprint notes B+
Fitch Ratings said it assigned a B+ rating with a recovery rating of RR4 to Sprint Corp.’s proposed $1 billion senior unsecured notes due 2025.
The company has an issuer default rating of B+ and B+ senior unsecured notes rating with a recovery rating of RR4.
The senior notes will be fully and unconditionally guaranteed on a senior unsecured basis by Sprint’s wholly owned subsidiary, Sprint Communications Inc.
Sprint Communications has an issuer default rating of B+, along with BB rating on its unsecured credit facility with a recovery rating of RR2, BB rating on its junior guaranteed unsecured notes with a recovery rating of RR2 and B+ rating on its senior unsecured notes with a recovery rating of RR4.
Sprint Capital Corp. has a B+ rating on its senior unsecured notes with recovery rating of R4.
Clearwire Communications LLC has an issuer default rating of B+, senior unsecured notes rating of BB+ with recovery rating of RR1 and first priority senior secured notes rating of BB+ with recovery rating of RR1.
The proceeds from the offering will be used for general corporate purposes, including working capital requirements, retirement or service requirements of outstanding debt and network expansion and modernization, Fitch said.
The outlook is stable.
Fitch said it believes Sprint’s standalone financial profile has deteriorated to the low single B rating.
Sprint’s financial profile also will remain weak for an extended period due to the time required to address the numerous execution- and operational-challenges, which has caused the company to seek additional liquidity to fund operating deficits, the agency said.
Sprint also must combat an intense competitive environment, S&P added.
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