Financial ratings wrap-up: MetroPCS, Motorola, Freescale and more

The following list includes ratings changes and financial information for wireless companies announced this week by investment-banking and financial-services firms.
Carriers
–Standard & Poor’s Ratings Services assigned its ‘B” rating to MetroPCS Wireless Inc.‘s proposed $300 million senior notes due 2014. The firm also affirmed its B corporate credit rating and all other ratings on parent company MetroPCS Communications Inc. “The ratings on MetroPCS Communications Inc. reflect what we view as a challenging business model, which targets lower income customers; a highly competitive environment; and high leverage,” said Standard & Poor’s credit analyst Catherine Cosentino.
Handset and infrastructure vendors
–Standard & Poor’s Ratings Services downgraded Nortel Networks to D from B- after the company filed for bankruptcy protection. R.W. Baird dropped coverage on the company following the news. Barclay’s Capital withdrew its estimates on the company.
–Credit Suisse First Boston dropped its price target on Motorola Inc. to $4.50 from $5 after the company preannounced quarterly earnings. The firm also lowered its EPS estimates on the company to $0 from 9 cents for 2009 and to 23 cents from 41 cents for 2010.
–JP Morgan downgraded Palm to neutral from overweight, saying the company faces risks including lower consumer spending and execution challenges. The firm also raised its price target on Palm to $7.50 from $7.
–Credit Suisse First Boston lowered its estimates on Nokia by 14% on lower handset industry sell-in growth forecasts for 2009.
–Barclay’s Capital lowered its 2010 EPS estimate on Texas Instruments to 15 cents rather than 20 cents on weaker demand.
Other
–Barclays Capital downgraded Ceragon Networks to equal weight from overweight.
–Barclays Capital downgraded Starent Networks to equal weight from overweight.
–Standard & Poor’s Ratings Services lowered its corporate credit rating on Freescale Semiconductor Inc. to B- from B+ and removed the rating from CreditWatch, where it was placed on Oct. 3, 2008, with negative implications. “The rating actions reflect our view of Freescale’s near- to intermediate-term operating prospects and related credit measures, which we believe will be adversely affected by the current economic environment,” said Standard & Poor’s credit analyst Lucy Patricola.