Moody's may cut Sprint

Moody's Investors Service said it placed under review for possible downgrade Sprint Nextel Corp.'s corporate family rating of Ba2, probability of default rating of Ba2, senior rating of Ba3 (LGD 5, 74%), senior bank credit facility rating of Baa2 (LGD 1, 8%), along with Sprint Capital Corp.'s senior rating of Ba3 (LGD 5, 74%) and Nextel Communications Inc.'s senior rating of Ba2 (LGD 3, 39%).

Also on downgrade review include iPCS Inc.'s senior secured first-priority rating of Ba2 (LGD 3, 42%) and senior secured second-priority rating of Ba3 (LGD 5, 74%).

The review was prompted by concerns that Sprint's continued weak operating performance, combined with a further deterioration in its relationship with Clearwire, could lead to potentially higher postpaid subscriber losses and increased investment requirements in the near to medium term, Moody's said.

The agency said it will assess the sustainability of Sprint's recent operational improvements, the magnitude of the company's future internal capital investments and the likely evolution of Sprint's relationship with Clearwire.

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