Fitch: U.S. Leveraged Finance Spotlight Series - Sprint Nextel Corp.

  Fitch: U.S. Leveraged Finance Spotlight Series - Sprint Nextel Corp.

Business Wire

NEW YORK -- February 14, 2013

Link to Fitch Ratings' Report: U.S. Leveraged Finance Spotlight -- Sprint
Nextel Corporation
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=699051

Fitch Ratings has published a 36-page company report on Sprint Nextel Corp.,
the latest in Fitch's recurring 'Spotlight Series' of leveraged finance
reports.

Softbank Corp.'s (Softbank) acquisition of Sprint Nextel Corp. (Sprint),
including an expected $8 billion cash infusion, materially strengthens
Sprint's financial and operating flexibility to pursue key consolidation and
spectrum opportunities, as witnessed in the past few months. Longer term,
Sprint and Softbank have significant challenges to improve competitive
position and make inroads against its much larger peers. As such, Fitch
expects Sprint will accelerate capital spending plans, particularly to
increase LTE capacity and density.

Sprint's ratings are currently on Rating Watch Positive as a result of
Softbank's offer. Several factors will weigh on the final ratings, including
post-transaction capital structure, uses for Softbank's capital infusion, free
cash flow (FCF) expectations, current operating trends, execution on network
upgrade objectives, outcome of Dish's competing offer, and assessment of
competitive environment. Fitch believes potential capital acceleration
detailed in Sprint's proxy depending on the scenario could delay FCF prospects
to at least 2015.

Fitch's Spotlight Series of company reports provide in-depth credit analysis
on a high-profile U.S. leveraged issuer with a significant amount of debt
and/or complex capital structure. In addition to an operating, liquidity and
financial analysis, the report also provides:

--Capital Structure analysis with debt diagrams;

--Recovery Analysis;

--Detailed debt document summaries; and

--Industry Risk, Market Structure and Competition.

Previous Spotlight Series reports include:

--SUPERVALU Inc. (Dec 21, 2012)

--HCA Holdings, Inc. (Oct 24, 2012)

--Community Health Systems, Inc. (Oct 1, 2012)

--Caeser's Entertainment Corp. (Sept 5, 2012)

--Calpine Corporation (June 21, 2012)

--First Data Corporation (June 6, 2012)

--Level 3 Communications, Inc. (May 29, 2012)

--Clear Channel Communications Inc. (May 3, 2012)

--Nielsen Company B.V. (April 20, 2012)

--Dean Foods Company (April 20, 2012)

--MGM Resorts International (Feb. 2, 2012)

Upcoming Spotlight Series reports include:

--Energy Future Holdings Corp. (update to Oct. 2011 report)

--Freescale Semiconductor Holdings I, Ltd

--Las Vegas Sands Corp.

--Univision Communications, Inc.

--U.S. Airways Group Inc.

The full report 'U.S. Leveraged Finance Spotlight Series Sprint Nextel Corp.'
is available on the Fitch web site at: www.fitchratings.com/usleveragedfinance

Additional information is available at 'www.fitchratings.com'.

Applicalbe Criteria and Related Research:

--'Fitch Maintains Sprint Nextel on Rating Watch Positive' (Dec 18, 2012);

--'U.S. Leveraged Finance Spotlight - SUPERVALU, Inc. (Dec 21, 2012)

--'U.S. Leveraged Finance Spotlight - HCA Holdings, Inc. (Oct 24, 2012)

--'U.S. Leveraged Finance Spotlight - Community Health Systems, Inc. (Oct 1,
2012);

--'U.S. Leveraged Finance Spotlight - Caesars Entertainment Corp.'(Sept. 5,
2012);

--'U.S. Leveraged Finance Spotlight - Calpine Corporation' (June 21, 2012);

--'U.S. Leveraged Finance Spotlight - First Data Corporation' (June 6, 2012);

--'U.S. Leveraged Finance Spotlight - Level 3 Communications, Inc.' (May 29,
2012);

--'U.S. Leveraged Finance Spotlight - Clear Channel Communications, Inc.' (May
3, 2012);

--'U.S. Leveraged Finance Spotlight - Nielsen Company B.V. (The)' (April 20,
2012);

--'U.S. Leveraged Finance Spotlight - Dean Foods Company'(April 20, 2012);

--'U.S. Leveraged Finance Spotlight - MGM Resorts International' (Feb 2,
2012);

--'U.S. Telecom Competitive Landscape: Living on the Edge'(Feb 11, 2013);

--'2013 Outlook: U.S. Telecom and Cable' (Dec 3, 2012);

--'Corporate Rating Methodology' (Aug 8, 2012);

--'Rating Telecom Companies' (Aug 9, 2012);

--'Recovery Ratings and Notching Criteria for Non-Financial Corporate Issuers'
(Nov 13, 2012);

--'Parent and Subsidiary Rating Linkage' (Aug. 8, 2012).

Applicable Criteria and Related Research:

U.S. Leveraged Finance Spotlight -- MGM Resorts International

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=666969

U.S. Leveraged Finance Spotlight -- Sprint Nextel Corp.

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=653926

U.S. Leveraged Finance Spotlight -- Clear Channel Communications, Inc.

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=676181

U.S. Leveraged Finance Spotlight: Nielsen Company B.V. (The)

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=539162

U.S. Leverage Finance Spotlight -- Dean Foods Company

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=675206

Corporate Rating Methodology

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=647229

Parent and Subsidiary Rating Linkage

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=647210

U.S. Leveraged Finance Spotlight -- First Data Corporation

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=678421

U.S. Leveraged Finance Spotlight -- HCA, Inc.

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=651626

U.S. Leveraged Finance Spotlight -- Sprint Nextel Corporation

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=699051

U.S. Leveraged Finance Spotlight Series -- Calpine Corporation

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=681659

U.S. Leveraged Finance Spotlight Series -- Level 3 Communications, Inc.

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=672158

U.S. Leveraged Finance Spotlight Series Community Health Systems, Inc.

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=687271

U.S. Leveraged Finance Spotlight Series: HCA Holdings, Inc.

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=688959

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Contact:

Fitch Ratings
Bill Densmore
Senior Director
+1-312-368-3125
Fitch, Inc.
70 W. Madison Street
Chicago, IL 60602
or
David Peterson
Senior Director
+1-312-368-3177
or
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brian.bertsch@fitchratings.com
 
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