S&P: Sprint on positive watch

Standard & Poor's said it placed its ratings on Sprint Corp. and its subsidiaries, including the BBB- corporate credit ratings, on CreditWatch with positive implications.

S&P said the action is based on steady operating improvement in the wireless segment, including healthy subscriber growth, lower churn, and strong wholesale customer additions, despite intense industry competition. Resulting revenue growth, together with cost control measures are boosting EBITDA and strengthening credit measures. The company is using sizable discretionary cash flow to reduce debt, further improving the financial profile.

The upgrade potential for the corporate credit and senior unsecured ratings will likely be limited to one notch to BBB from BBB- because of competitive concerns and stagnant-to-declining wireline business trends, the agency said.

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