Financial ratings wrap-up: Inmarsat, RIM, Leap and more

The following list includes ratings changes and financial information for wireless companies announced this week by investment-banking and financial-services firms.
Carrier
Standard & Poor’s Ratings Services revised its outlook on U.K.-based mobile satellite services provider Inmarsat Ventures Ltd. to positive from stable. It also affirmed all ratings on the company and its related entities, including the ‘BB’ long-term corporate credit ratings. “The outlook revision reflects an expected strengthening of Inmarsat’s business risk profile due to the pending vertical integration of Stratos Global Corp. (B+/Stable/–) upon completion of its planned purchase during 2009,” said Standard & Poor’s credit analyst Michael O’Brien.
–Standard & Poor’s Rating Services assigned its ‘CCC’ rating to Leap Wireless International Inc.‘s proposed $200 million of convertible senior notes due 2014, with a ‘6’ recovery rating, indicating the expectation for negligible recovery in the event of a payment default. The firm also assigned its ‘B-‘ rating to Cricket Communications Inc.’s proposed $200 million of senior notes due 2015 with a ‘4’ recovery rating, indicating the expectation for average recovery in the event of a payment default. S&P also affirmed Leap’s existing ratings, including its ‘B-‘ corporate credit rating. The outlook is stable.
Handset and infrastructure vendors
–RBC Capital Markets lowered its price target on Motorola Inc. to $9 from $10, saying the product portfolio is still not where it needs to be. The firm reduced its unit assumptions for Motorola for the second quarter to 25 million from 28 million and lowered its EPS estimates to a loss of 8 cents from a loss of 3 cents for 2008 and profit of 42 cents rather than 45 cents for 2009.
–RBC Capital Markets lowered its 2008 EPS estimate on Nokia to $1.58 from $1.65 on the impact of currency translation.
–Lehman Brothers raised its price target on Research In Motion to $165 from $145 on a healthy Curve launch and strong expectations for the Bold in the second half. The firm also raised its estimates on the company to $3.85 from $3.61 for 2008 and to $5.63 from $5.07 for 2009. RBC Capital Markets raised its price target on RIM to $165 from $150 and raised its estimates on the company to $4.08 from $4.05 for fiscal 2009 and to $5.93 from $5.83 for fiscal 2010.
Other
–R.W. Baird raised its price target on PCTel to $12 and bumped its estimates on a favorable product mix and higher-than-expected sales for the second quarter. The firm’s new estimates are 48 cents rather than 44 cents for 2008 and 55 cents rather than 46 cents for 2009. Baird noted growth opportunities in RF scanners, GPS and WiMAX antennas for the company.