Moody's upgrades T-Mobile

Moody's Investors Service said it upgraded T-Mobile USA, Inc.'s corporate family rating to Ba1 from Ba2, its probability of default rating to Ba1-PD from Ba2-PD and changed its outlook to positive from stable.

The agency also affirmed T-Mobile's senior secured notes at Baa3 and raised its senior unsecured notes to Ba2 from Ba3. As part of this action, Moody's also boosted the senior unsecured notes of T-Mobile's wholly-owned subsidiaries Sprint Corp. and Sprint Communications, Inc. to Ba2 from B1 and the unsecured notes of Sprint Capital Corp. Ba2 from B1. T-Mobile's speculative grade liquidity rating is maintained at SGL-1.

“The ratings upgrade and change to positive outlook reflect Moody's projections of strong financial performance supported by wireless subscriber growth, EBITDA margin expansion, steadily declining debt leverage (Moody's adjusted) and rising free cash flow. The upgrade also reflects the company's network investment focus and disciplined and prudent approach to future share buybacks,” the agency said in a press release.

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