Sprint's credit rating gets cut by S&P

Sprint's credit rating gets cut by S&P
As Sprint faces a tough battle ahead against some serious competition in the market, Sprint Nextel Corp.'s corporate credit rating was slashed by Standard & Poor's citing their concern over repeated postpaid customer losses could hurt their revenue. Initially clocking in at a BB grade, Sprint was lowered to BB- which is essentially three spots lower from what they were. If there was some miraculous turn around by the number three wireless carrier in the country, their outlook on credit and debt levels are unlikely to improve dramatically in the short term – even if they were able to really squeeze out from their pockets by cutting costs and subscriber declines. S&P said, “Sprint Nextel’s deteriorating operating and financial performance are the result of several factors, most notably the erosion of its high-margin postpaid-subscriber base at a time when its competitors are experiencing healthy, albeit slowing, customer growth.” Now the really bad part out of all this is the fact that their lower credit rating can really make it tough on them to raise money for their cause. When you look at their stock performance, it may look a bit grim as the stock has declined 11 percent this year. Let's hope that their latest push helps them stop the bleeding and make some kind of turn around before it's too late.

via Sprint Connection

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40 Comments

1. herbiederb

Posts: 275; Member since: Jan 28, 2010

Hey Sprint fanboy idiots.. cant wait to see your comments to this article. HAHAHAA Its already too late for Sprint IMO. Even Supersonic wont save them.

2. DonLouie

Posts: 594; Member since: Dec 22, 2008

I got a comment, it always darkest before the dawn. I won't call anybody an idiot because of thier carrier choice but they're happy with Sprint is idiotic.

3. kilari

Posts: 49; Member since: Oct 28, 2009

Shut up fagface! Hows that for a comment?

4. s0nic69 unregistered

+1

7. scottmbolt unregistered

Why would you want a carrier to fail? You f*cking 12 year olds. Get a goddamn life and quit commenting your nonsense high school banter on these forums. Come back and talk then your parents stop paying for your family plans, you lousy pricks.

9. remixfa

Posts: 14605; Member since: Dec 19, 2008

dude,while sprint probably will fail if they dont turn things around, to root for them to crash is childish. There are thousands of employees that will be out of work in this crap ass economy if they fail. You "rooting for them to fail" is just rooting for someone to lose their house when they cant pay their mortgage because sprint dissolved and they lost their jobs. Thats pretty assholic.

13. herbiederb

Posts: 275; Member since: Jan 28, 2010

Not rooting for them to crash, havent ever shorted the stock either. Just spelling out the facts for some of these fanatics that refuse to put 1 and 1 together and continue to misinform readers here. I have no problem with Sprint users, have no problems with the fanboys. Its the unrealistic idiotic fanboys who refuse to accept any of the numerous negative articles put out that I am amused by. Read some of these guys previous comments. A lot of gay references and VZW bashing. They refuse to acknowledge the facts. @DonLouie Love the Dark Knight quote. You'll eventually come around. @kilari If Im a fag.. youre my bitch.

19. rwolf1984

Posts: 536; Member since: Jun 06, 2009

herbiederb is completely right... Sometimes I am guilty of going out of bounds and carried away on trash talking Sprint. But the facts are the facts. Sprint is dying fast. If you get bars with Sprint that great, if you love their phones...cool...But you can't continue denying that Sprint is struggling and they might be fuct. Sprint going out of business wouldn't be so bad. We are in a free-market economy there are winners and losers. It would be unfortunate for them to lose, but its Sprints fault. Sprint got Sprint into this mess! Dan Hesse's 69ing, pre-paid and the 4G might not be enough because its not profitable. Customers and fanboys a like should be concerned whether the network they trust will be there. The proof is in the pudding...and in this case the balance sheet, the stock, and the credit rating.

20. herbiederb

Posts: 275; Member since: Jan 28, 2010

Couldnt have put it better myself. Like I said in another post, IF Supersonic really exists and comes to market AND IF WiMax is on in NYC, I will be the 1st to sign it. Those are 2 big IFs, and unfortunately for me the consumer, talk is real cheap especially for Sprint.

29. hairymonkey

Posts: 1; Member since: Mar 06, 2010

"it's always darkest before the dawn.." is not a Dark Knight quote, it's a proverb.

5. oddmanout

Posts: 443; Member since: May 22, 2009

Some are taking this a lil too serious. I dont see how this is effecting them to the point where they feel the need to call sprint users idiots. I mean this is just an article and it is just business (which obviously doesnt involve him). At the end of the day, I find more good coming from sprint than bad. Sometimes business is up and sometimes its down... thats the economy for you. Maybe you'll understand this when you find a life of your own someday. I'm the farthest thing from a fanboy but I am a proud sprint user. I get good coverage, i got a good phone, and i pay less than you do. I dont see the bad in it for anyone...

8. scottmbolt unregistered

The problem is, most of these arrogant jack asses wouldn't know "business" if it hit them in the face. Sprint is an excellent carrier, and gives my business and I excellent coverage in this area. We need reliable coverage because our phones are the medium for our business relations. Sprint is more reliable here than AT&T without a doubt, so they aren't even considered as an option. Sprint's service is just as reliable as VZW, but with a 1/3 less coast. These little high school kids with their Droids and iphones (which they purchased solely for the status icon symbolization) get on here and talk up a bunch of stupid, ignorant BS, while their parents still pay for their phone bills.

11. remixfa

Posts: 14605; Member since: Dec 19, 2008

what sprint needs is a complete restructuring and retraining of its customer service. Its got the coverage, bandwith, and pricing. All of sprints problems are the way its run. Of course, a top end android phone wouldnt hurt either, but thats the least of the concerns.

17. ibap

Posts: 871; Member since: Sep 09, 2009

I got off to a rocky start with Sprint - to the point that just after the Pre was released, I returned the 3 phones I had within the return period. I had gone into the store nearest home thinking I would get a Pre, check out the coverage in the places I needed it, then come back in to get the other 2 phones for the family. The guy in the store said that there were advantages to getting all 3 at once, and there would be no restocking fee to swap phones, since they weren't with me on that trip. So when I went back to swap phones, they were charging me restocking, and I canned the whole idea. The VZW coverage issue (no coverage at daughter's school - other options were T-mob and Alltel), remained however, and I wound up getting 3 phones through my alumni association (discount). For no reason I'm certain of, I couldn't complete the whole thing on the website, phoned them, and they finished it on the phone, saying it would all get the same benefits, including an invoice credit over the first 3 months. Credit didn't show up. Called - they said they couldn't do it over the phone. So I went in to a different Sprint store - they wrote me the entire credit at once, which wasn't what I expected either. This is the store I will go to if I need anything in the future. So @remixfa is right. It really is people training, which is one of those areas where VZW excels. Hear that Sprint? BTW - service and coverage through Sprint has been great! Everybody likes their phones (I've got an HTC TP2) and I went so far as to get their femtocell for home (NO ONE gives us decent coverage at home unassisted) bought on eBay and activated. For a long time I was unthrilled with VZW devices as well - now there's a spate of them - so thank me for that, they didn't get on the ball for that until I left!

6. dadoo985

Posts: 27; Member since: Oct 30, 2009

I AGREE WITH "oddmanout".....SPRINT HAS ALL THOSE GREAT QUALITIES BUT THEIR DEVICES. NEED NEW HANDSETS SPRINT!!!

12. DonLouie

Posts: 594; Member since: Dec 22, 2008

I don't see the phone argument, Sprint is only missing a huge screen and 2.0, one of the bettet phones they've had vzw did everything they could to belittle it only to later say how they were getting too that now all the carriers say they'll have at least one.

15. herbiederb

Posts: 275; Member since: Jan 28, 2010

I agree, network good, especially with VZW backbone. Handsets need to improve. Im excited for the Supersonic to hit the market. If WiMax is on in NYC by then, I will likely sign one.

10. ibap

Posts: 871; Member since: Sep 09, 2009

Given the current activity with handsets, I rather suspect that VZW (who was my carrier until I couldn't stand having no coverage at daughter's school) and T-mob are cutting deals with the manufacturers just to keep Sprint from getting some of the newer ones.

14. herbiederb

Posts: 275; Member since: Jan 28, 2010

Maybe. I feel Sprint simply doesnt have the cash to subsidize the higher-end phones.

33. rwolf1984

Posts: 536; Member since: Jun 06, 2009

@Herbiederb You're absolutely right again!!! They can't afford to subsidize. Thats why they have junk phones, get everything last usually and sell refurbs as new. Look at the prices, one price for upgrade and new...wtf is that? only sprint does that crap.

34. remixfa

Posts: 14605; Member since: Dec 19, 2008

your both tards. What a carrier pays in subsidies they make back multifold normally in rate plans. Maybe they dont make enough back to subsidize an Xperia X1 down to 50 bux but they do make enough for most smartphones to be knocked down into range. The problem is lack of sales. Manufacturers want to know that if they make a "sprint" phone, its going to sell a few million just like it does on VZW, ATT, or even Tmobile. Sprint had to promise bigtime sales to get the exclusive on the Pre and the Hero. I dont think either one sold to expectations... which hurts future sales promises.

36. phonedemocracy

Posts: 98; Member since: Sep 30, 2009

I'm not understanding your subsidizing high end phone comments. They have the Palm Pre, which your short term memory might have forgotten was the hot shit this last summer (phone didnt live up to hype, thats more an issue with Palm than anything else). They were the second carrier to land an Android powered device (Hero) after T-Mobile's G1/mytouch,. and they had it back in September, not November like Verizon. If you want a large screen and keyboard they put the Moment out there until they also get the CDMA N1. So to recap: Sprint got the Hero before Verizon got the Eris, Sprint got the Palm Pre and Pixi before Verizon got them. Verizon is no slouch either, and they got exclusives on the Droid and Storm 2. The only carrier I see that fails at getting phones is AT&T, which still has the iphone.

37. herbiederb

Posts: 275; Member since: Jan 28, 2010

Its simple economics, less high end customers, less high end phones. Only high-end phone Sprint has is TP2. Samsung and Palm phones they have are failures.. underpowered, too small, or crappy UI. People on Sprint are on it b/c plans are cheap and they really dont care about high end phones. Sprint doesnt have the cash to take a risk right now and are spiraling into bankruptcy. btw.. pray your children arent 'tards'

38. herbiederb

Posts: 275; Member since: Jan 28, 2010

None of the phones you mentioned are high-end. Ask youself why people choose Sprint. Is it b/c they have a high-end phone they want OR is it b/c the plans are cheap? Its the latter. T-Mo appeals A LOT to the younger consumers b/c they have both.

16. whocares

Posts: 235; Member since: Dec 19, 2009

cant we all just get along?

18. desertmike680

Posts: 42; Member since: Sep 30, 2009

Ok....Stand and Poor has not done a review for a little over a year. This is an old article. Sprint has been improving on basically every aspect of operations for the past 2 years. Our 4th quarter results again, posted much needed improvement on debt and free cash flow. Being an employee of Sprint for the past 7 years, we are always notified of the companies performance from our CEO, through our employee website. Hence, the last report were the 4th quarter results. Stop knocking Sprint. Were not Toyota.

21. herbiederb

Posts: 275; Member since: Jan 28, 2010

Youre definitely not Toyota, theyre very profitable.

22. desertmike680

Posts: 42; Member since: Sep 30, 2009

Ok, you cant speculate in regards to that when you dont work for the company. I work for the company. And your an idiot.

23. ibap

Posts: 871; Member since: Sep 09, 2009

This is from a March 4, 2010 S&P rating.

24. corporateJP

Posts: 2458; Member since: Nov 28, 2009

Herbiederb +1 Desertmike680...FTL. You will be an acquisition target soon. Whoever takes over, I hope they can afford to actually put up some towers OUTSIDE of a major metro area. I got nothing against Sprint, I hope they survive, they just have terrible coverage and a bad track record of customer service.

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