Fitch to rate T-Mobile, facilities, notes

Fitch Ratings said it expects to assign a BB+(EXP) rating to T-Mobile US, Inc.'s long-term issuer default rating.

The expected ratings are contingent on the merger between T-Mobile and Sprint Corp. being approved and a final committee review by Fitch to assess any change in assumptions that may have occurred from the time the merger was announced.

The agency said it would also expect to assign a BBB-/RR1(EXP) to T-Mobile's proposed secured credit facility, secured term loan and secured notes.

The one-notch uplift reflects superior recovery prospects at the senior secured level of the pro forma capital structure incorporating the value of the combined wireless network, subscriber base and spectrum portfolio.

The expected ratings are for a merged T-Mobile-Sprint entity. If the merger does not occur, the expected rating for T-Mobile or Sprint could be different.

“Fitch's expected ratings follow Sprint and T-Mobile's announcement that the companies have entered into definitive agreements to merge operations through an all-stock transaction with an exchange ratio of 9.75 Sprint shares for each T-Mobile US share,” the agency said in a news release.

“The combination is expected to create significant scale, asset and synergy benefits that should materially improve the combined entities' long-term competitive position.”

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