Reuters logo
TEXT-S&P comments on Clearwire Corp
October 18, 2012 / 6:50 PM / 5 years ago

TEXT-S&P comments on Clearwire Corp

Oct 18 - Standard & Poor’s Ratings Services said today that its ratings and outlook on Bellevue, Wash.-based wireless carrier Clearwire Corp. (CCC/Developing/--) are not immediately affected by Sprint Nextel Corp.’s (B+/Watch Pos/--) acquisition of Eagle River Holdings LLC’s equity interest in Clearwire, which will result in Sprint assuming control of Clearwire with a 50.4% stake in the company, up from the previous 49% stake. Although we do not believe that Sprint has any immediate plans to acquire all of Clearwire, we do view this as a potential credit positive for Clearwire, as it could lead to additional funding if Japan’s SoftBank completes its acquisition of a 70% stake in Sprint. We believe Clearwire’s large spectrum position in frequencies similar to that of Softbank will have potential value for the Japanese wireless carrier in terms of equipment savings and technology development. However, we do not view Sprint’s increased stake as sufficient for a higher rating on Clearwire. We currently expect Clearwire to run out of cash by mid-2013 absent external sources of liquidity.

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below