NEW YORK-Standard & Poor’s Ratings Services cut its corporate credit ratings on Sprint PCS affiliate Horizon PCS Inc. citing concern over limited headroom against execution risks under recently revised bank maintenance covenants and weak liquidity. S&P also reaffirmed its negative outlook for the carrier.
“Given the weak economy, competition and problems with subprime customers under the Clear Pay program that have not yet been fully resolved, the company could find it challenging to meet these covenants,” said Michael Tsao, credit analyst at S&P.
The downgrade comes on the heels of Moody’s Investment Services cutting a number of credit ratings on seven of Sprint PCS’ affiliates due to similar financial and operational concerns.
