Moody's Sprint unchanged

Moody's Investors Service said that Sprint Nextel Corp.'s election to surrender a portion of its rights in Clearwire and reduce its voting interest to 49% is a mild positive to Sprint's credit profile.

The move eliminates any remaining ambiguity surrounding the risk of a cross-default occurring for Sprint should Clearwire default, the agency said. Although Sprint's rights to put shares to Clearwire have offered this protection since the inception of the equity agreement, the exercise of Sprint's rights leave no doubt that Clearwire is unable to cause a cross default of Sprint's debt.

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