NEW YORK-To reflect “the remarkably stable operating and financial performance” of Nextel Communications Inc., Moody’s Investors Service has upgraded its outlook to stable from negative on the carrier’s $15 billion in outstanding debt.
The change also takes into account Nextel’s improvements in earnings before interest, taxes, depreciation and amortization, a measure of cash flow, and its early retirement of $2.6 billion in debt and preferred stock.
Since last June when the rating agency downgraded its outlook on all non-investment-grade wireless carriers, “Nextel has nonetheless continued to grow its market share of subscribers (without acquiring other carriers) while maintaining its industry leading subscriber metrics, with high revenues per user and low churn,” said Mark Gray and Marcus Jones, corporate finance analysts for Moody’s.
