Moody’s drops Clearwire exchangeables to B3

Moody's Investors Service said it downgraded Clearwire Communications LLC's exchangeable notes to B3 following Sprint Corp.’s suspension of Clearwire's audited financial statements.

Sprint has discontinued the publication of Clearwire's financials following the earlier repayment of Clearwire's secured notes in 2016, which resulted in the elimination of the disclosure requirement. The $629 million of exchangeable notes are unconditionally and irrevocably guaranteed by Sprint Corp. and Sprint Communications, Inc.

“Due to the suspension of financials, Moody's will have insufficient information to assess Clearwire's standalone credit worthiness,” the agency said in an news release.

“The B3 rating for Clearwire's exchangeable notes now reflects only the guarantees provided by Sprint and Moody's views the exchangeable notes as pari passu to Sprint's B3-rated senior unsecured notes.”

The agency also affirmed Sprint's B2 corporate family rating, B2-PD probability of default rating, Ba2 secured rating, B1 junior guaranteed rating, B3 unsecured rating and SGL-3 speculative grade liquidity rating.

The outlook remains stable.

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