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Following is a list of wireless companies whose ratings were either upgraded or downgraded by financial services firms this week.
- Standard & Poor’s lowered its ratings on Triton PCS Inc. from B- to CCC+ with a negative outlook. S&P said the ratings change was prompted by Triton revising its 2005 EBITDA guidance due to anticipated weak subscriber growth, higher costs related to a property exchange with Cingular Wireless/AT&T Wireless and a longer timeframe to transition customers and integrate networks related to the new properties. S&P also cited continued pressure on the company’s roaming revenues.
- JPMorgan upgraded its rating on Intellisync from neutral to overweight, saying the company is approaching an inflection point with steady growth of the enterprise businesses and accelerating adoption of the carrier business. JPMorgan said Intellisync’s relationships with Verizon and Sprint are positives, and the retail segment is working favorably for the company.
- Smith Barney downgraded Radio Shack following the company’s first-quarter earnings update that showed some wireless weakness, as well as diminished confidence in the ability of the company’s management to execute on a three-year growth strategy outlined last year. Smith Barney noted indirect wireless players like Radio Shack are losing market share to direct players due to a relative lack of marketing.
