NEW YORK-Standard & Poor’s Ratings Services assigned its ‘CCC’ rating to Sprint PCS affiliate iPCS Inc.’s Escrow Co.’s $180 million senior unsecured notes offering due 2012 and assigned its ‘CCC+’ corporate rating to iPCS Inc. and iPCS Escrow Co. with a “developing” outlook.
IPCS, which filed for Chapter 11 bankruptcy protection last year, recently announced the settlement of legal charges brought against Sprint PCS, expected to allow the affiliate to move ahead with its reorganization plans later this year.
“Ratings on iPCS reflect the company’s high debt leverage near term, its high churn rate and the weak business position common to all Sprint PCS affiliates,” said Rosemarie Kalinowski, credit analyst at S&P. “These factors are mitigated somewhat by the company’s improved relationship with Sprint PCS and its opportunity for growth given its 3.8 [percent] penetration rate.”
