S&P: Outlook Steady on Sprint and Clearwire
After DISH Network's surprise counteroffer to Sprint Nextel's bid for Clearwire last week, Standard & Poor's Ratings Services took another look at Sprint's and Clearwire's corporate credit ratings and decided to keep them on "CreditWach with positive implications."
S&P said all of Sprint's ratings, including its B+ corporate rating will "remain on CreditWatch with positive implications," according to the S&P announcement.
S&P placed Sprint on CreditWatch in mid-October after the mobile operator announced it was negotiating a buyout deal with Japanese telecom SoftBank. Those talks eventually turned into an agreement to sell 70% of Sprint to SoftBank for $20.1 billion.
All of Clearwire's ratings, along with its corporate crediting rating of CCC, will also stay on S&P's CreditWatch, also with "positive implications."
S&P's original CreditWatch for Clearwire was announced after Sprint signed an agreement in mid-December to buy the 49% of Clearwire it did not already control.
Despite DISH's offer to buy some Clearwire stock at a price 11% higher than that of Sprint's offer, S&P said there were "significant hurdles for DISH to overcome in its bid for Clearwire."
Clearwire has said it is considering the bid; Sprint has said it is an inferior bid and should not be allowed to proceed.
The article S&P: Outlook Steady on Sprint and Clearwire originally appeared on Fool.com.Fool contributor Dan Radovsky has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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