S&P cuts Sprint Nextel

Standard & Poor's said it lowered its corporate credit and senior unsecured debt ratings on Sprint Nextel Corp. to BBB+ from A-.

The agency said it also revised the outlook to negative from stable while the A-2 commercial paper rating was affirmed.

S&P added that the downgrade reflects a more aggressive financial policy, while the outlook change is the result of concerns about recent operating performance.

The ratings on Sprint Nextel reflect a satisfactory business profile from: its position as the third-largest wireless carrier in the United States, Nextel's high average revenue per user and low subscriber churn from its entrenched customer base.

Tempering factors include competitive wireless industry conditions, a more aggressive financial policy, merger integration and network technology implementation challenges and a large proportion of subprime customers, which is inhibiting progress in reducing churn, S&P added.

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