NEW YORK-Citing continued competitive pressure and a slowing subscriber base, Moody’s Investor Services downgraded its outlook for the wireless industry to negative and placed a majority of non-investment grade operators on review for possible downgrade.
The ratings agency revised its outlook for both AT&T Wireless and Nextel Communications from stable to negative and initiated a review of ratings for all of Sprint PCS’ wireless affiliates including AirGate PCS, Alamosa PCS, Horizon PCS, iPCS, IWO Holdings, US Unwired and Ubiquitel. Moody’s also initiated reviews for Nextel Partners, Triton PCS and Leap Wireless International.
Rural operators were not spared either with Dobson Communications, Rural Cellular and Western Wireless all placed under review for possible downgrades.
Fellow credit ratings agency Standard & Poor’s also reported it was placing Leap Wireless’ corporate credit rating on CreditWatch with negative implications due to heightened concerns about the company’s liquidity. S&P did however reaffirm its stable credit rating for AT&T Wireless.
