Standard&Poor's said today that the closing of Sprint Corp.'s (BBB-/Stable/A-3) new $1.5 billion unsecured revolving credit facility, with no springing liens, to replace a $2.0 billion facility that expires in August 2003 has no impact on the company's credit rating or outlook. The successful completion of this 364-day facility with a one-year term out had been anticipated. As of June 30, 2002, excluding the bank facility and potential proceeds from the sale of the directories business, sources of liquidity totaled $1.85 billion. In addition, the company is expected to be free cash flow positive in 2003. Sprint also amended its Global Markets accounts receivable securitization program to remove the rating trigger. This action enhances the company's liquidity position.
