Moody's may lift Virgin Mobile; Sprint affirmed

Moody's Investors Service said it placed Virgin Mobile USA, LP's ratings under review for possible upgrade and affirmed Sprint Nextel Corp.'s corporate family rating and negative outlook following the announcement that the boards of each company have agreed for Sprint Nextel to acquire Virgin Mobile in an all-stock deal, which values Virgin Mobile at about $483 million.

Moody's noted that its decision to place Virgin Mobile's ratings under review for upgrade reflects the positive attributes the acquisition would bring to Virgin Mobile debt holders since Sprint Nextel is rated several notches higher.

Moody's said its affirmation of Sprint Nextel's ratings and negative outlook largely reflects the relatively small size of the anticipated acquisition and its limited impact on Sprint Nextel's financial performance.

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