Standard & Poor’s Ratings Services Inc. offered a positive outlook on Sprint Corp.’s acquisition of Nextel Communications Inc.
“Upon completion of the merger between the two companies, likely to close within the next few weeks, we expect to raise our corporate credit and senior unsecured debt ratings on Sprint to A- from BBB-,” said Standard & Poor’s credit analyst Eric Geil.
At the same time, the firm said it expects to raise its corporate credit rating on Nextel to ‘A-‘ from ‘BB+’, and raise the rating on Nextel’s senior unsecured debt to ‘A-‘ from ‘BB’.
The firm said the outlook on the merged Sprint Nextel will be stable, the firm said, based on the continuing operating and financial improvement of both companies’ wireless operations. The firm said Sprint-Nextel will be analyzed on a consolidated basis and had total debt of $24.7 billion June 30.
