Moody's: Sprint upgrade positive

Moody's Investors Service said that Sprint Nextel Corp.'s recently announced $5 billion plan to upgrade its wireless network will result in significant cost savings over the next five years.

But the planned investment does not address Sprint's already sizable, and possibly growing, investment in Clearwire, the agency said.

The lack of a unified long-term plan, specifically regarding Sprint's 4G roadmap, reinforces concerns regarding Sprint's future credit profile, Moody's said.

Sprint remains on review for possible downgrade based on the uncertainty surrounding its relationship with Clearwire and several strategic issues, including the cost of the upgrade plan.

Moody's said it views Sprint's Network vision as a mild positive, but is concerned that this plan will not lead to a unified long-term network road map with Clearwire, a key factor weighing on Sprint's ratings.

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