S&P gives Sprint notes B

S&P said it assigned its B issue-level rating and 4 recovery rating to Sprint Corp.'s proposed $1 billion of senior notes due 2026.

The 4 recovery rating indicates an expectation for average (30%-50%; rounded estimate: 30%) recovery in the event of payment default.

“Although the new issuance reduces recovery prospects for senior unsecured creditors, it is not sufficient to revise the recovery rating,” the agency said in a news release.

S&P said it expects that net proceeds from the notes will be used to fund network investment, debt repayment or for working capital requirements.

The B corporate credit rating and stable outlook are unchanged.

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