S&P: Sprint Nextel remains on positive watch

Standard & Poor's said its ratings on Sprint Nextel Corp., including the B+ corporate credit rating, remain on CreditWatch with positive implications.

"Today's CreditWatch update follows the announcement that Sprint Nextel has agreed to sell a majority stake to Softbank," said S&P credit analyst Allyn Arden in a news release.

The ratings were placed on CreditWatch with positive implications on Oct. 11 following the announcement that Softbank was seeking to buy all or part of Sprint Nextel.

Sprint Nextel has since announced an agreement to a series of transactions under which SoftBank will invest about $20.1 billion in Sprint Nextel, of which about $12.1 billion will be distributed to Sprint Nextel stockholders in exchange for current outstanding shares and the remaining $8 billion will represent a cash infusion in Sprint Nextel.

The companies expect the transaction to close in the second quarter of 2013, at which time SoftBank will own about 70% of Sprint Nextel.

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