Sprint: Moody’s Downgrades Debt To Junk

Moody’s today downgraded Sprint Nextel ’s (S) senior unsecured debt to a non-investment grade Ba2 from Baa3 - in other words, Sprint’s debt has been downgraded to junk bond status. Moody’s also assigned the company a corporate family rating of Ba1, which is non-investment grade as well. Moody’s said the downgrade reflect a “significantly weakened market position among the national wireless carriers and its continuing challenges in turning around its wireless operations amid intense competition and weak economic conditions.” After hours, Sprint shares are down 7 cents, or 2.9%, to $2.35. (link)