CHICAGO-Fitch Ratings upgraded its ratings outlook for Nextel Communications Inc.’s B+ unsecured notes, BB senior secured bank facility and B- preferred stock rating from stable to positive, which the rating company attributed to its belief that Nextel’s favorable financial and operating trends will continue during the next several quarters.
Fitch did warn that challenges and short-term risks, including the Federal Communications Commission’s decision on the carrier’s 800 MHz spectrum realignment plan, weak economic environment and fundamentals in the wireless industry, still remain for Nextel.
Long term, Fitch said it is concerned about competitive threats to Nextel’s Direct Connect offering, potential funding requirements if the 800 MHz spectrum plan is approved and the technical viability of the carrier’s iDEN network.
