Moody's changes Nextel Partners, Ubiquitel views to developing

Moody's Investors Service said it changed the outlooks of Nextel Partners, Inc., its subsidiary Nextel Partners Operating Corp. and Ubiquitel Operating Co. to developing pending a decision by Sprint Nextel Corp. as to its plans for the debt of these companies.

Ratings affected include Ubiquitel's B3 corporate family rating and Caa1 $420 million 9 7/8% senior unsecured notes due 2011, Nextel Partner's Ba2 corporate family rating and Ba3 $475 million 8 1/8% senior notes due 2011 and Nextel Partners Operating's Ba1 $100 million senior secured revolving credit facility due 2009 and Ba1 $550 million senior secured term loan D due 2012.

Sprint Nextel (Baa3) acquired the companies in June and July as it continues the process of acquiring its former affiliates. According to Moody's, Sprint Nextel recently indicated in an SEC filing that it will no longer be filing public financial reports for these companies and has not yet stated whether it will guarantee their debt.

Should Sprint Nextel choose to unconditionally and irrevocably guarantee Nextel Partners and Ubiquitel's debt, Moody's said there will be full credit substitution and Nextel Partner's and Ubiquitel's rating will be upgraded to that of Sprint Nextel.

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