S&P puts T-Mobile US on positive watch

S&P said it placed its ratings on T-Mobile US Inc. and Sprint Corp.’s senior unsecured debt rating on CreditWatch with positive implications.

The BBB- rating on the company's secured debt is not on CreditWatch because the security is expected to fall away if the agency raises the ratings to investment grade, which would make this debt pari passu with T-Mobile’s unsecured debt.

“Strong operating and financial performance, coupled with merger synergies, should enable T-Mobile to maintain S&P Global Ratings-adjusted leverage below 4x in 2022, approaching the mid-3x area in 2023. During the first quarter of 2022, T-Mobile added about 589,000 postpaid phone customers while maintaining churn below 1%, despite elevated levels of churn from legacy Sprint customers,” S&P said in a press release.

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