Fitch Releases 2Q'13 U.S. Telecom & Cable Stats Quarterly Report

  Fitch Releases 2Q'13 U.S. Telecom & Cable Stats Quarterly Report

Business Wire

CHICAGO -- October 2, 2013

According to a new report issued today by Fitch Ratings, U.S. telecom and
cable credit profiles are steady, although aggregate leverage slightly
increased year-over-year to 2.51x from 2.33x due to higher debt levels of
approximately $410 billion at the end of the second quarter.

DISH's leverage increased a full turn to 5.0x after issuing $2.3 billion of
debt during the quarter. The company maintains an elevated cash balance of
$9.5 billion to support its wireless ambitions, including a recent $2.2
billion bid to acquire spectrum assets from LightSquared LP. Fitch anticipates
that aggregate leverage will continue to increase through the remainder of the
year as companies pursue M&A activity and prepare for the upcoming wireless
spectrum auctions.

Average capital intensity increased 110 bps to 14.7% year-over-year, which was
heavily influenced by investment to accelerate the deployment of 4G LTE
technology. For example, Sprint Corporation accelerated nearly $4 billion of
capital expenditures into 2013 due to Softbank Corporation's $5 billion cash
infusion. Other material increases in capital expenditures include T-Mobile
US, Inc. as the company continues to integrate newly acquired MetroPCS
Communications, Inc. into its operations. Following the acceleration of
spending in 2013, Fitch expects capital intensity to retreat in 2014 to its
normalized range between 13.5% and 14% for the industry.

Fitch's 'U.S. Telecom and Cable Stats Quarterly' provides a summary of
operating performance, credit metrics, and liquidity positions of the
companies in the telecommunications sector of Fitch's rating universe over the
past four years, as well as key credit strengths and concerns as of the end of
second-quarter 2013.

The full report 'U.S. Telecom & Cable Stats Quarterly --Second-Quarter 2013'
is available at 'www.fitchratings.com' or by clicking on the link.

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

Applicable Criteria and Related Research: U.S. Telecom and Cable Stats
Quarterly -- Second-Quarter 2013

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=718496

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EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER
ON THE FITCH WEBSITE.

Contact:

Fitch Ratings
Dave Peterson, +1-312-368-3177
Senior Director
Fitch Ratings, Inc.
70 W. Madison Street
Chicago, IL 60602
or
Mike Weaver, +1-312-368-3156
Managing Director
or
Media Relations
Brian Bertsch, New York, +1 212-908-0549
brian.bertsch@fitchratings.com
 
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