Moody's rates Leap notes Caa1, Cricket notes B3

Moody's Investors Service said it assigned a B3 rating (LGD4, 69%) to Cricket Communications Inc.'s $200 million notes due 2015 and a Caa1 rating (LGD6, 95%) to its parent Leap Wireless International, Inc.'s $200 million convertible notes due 2014.

The agency also assigned Leap a B2 corporate family rating.

The outlook is stable.

Proceeds will be used to accelerate the launch of markets acquired in the 2006 spectrum auctions.

The B2 corporate family rating considers Moody's expectations that Leap's rapid growth plans will consume a significant amount of cash over the next few years as it seeks to build out wireless networks and launch service in several additional markets, Moody's said.

Ratings also consider Moody's views that Leap faces significant execution risks mid intensifying industry competition, the agency noted.

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