Standard&Poor's Ratings Services said today that Sprint Corp.'s (BBB-/Stable/A-3) agreement to sell its directories business for $2.23 billion cash will have no immediate effect on the ratings. Standard&Poor's had not previously incorporated liquidity from the divestiture into the ratings. Although the deal bolsters Sprint's near-term liquidity by providing funds for potential debt repayment, by exiting the directories business, Sprint foregoes a relatively stable, high-margin cash flow generator that has minimal capital spending needs. Sprint also faces challenges in its Sprint PCS Group wireless business from heavy competition and a slowing growth rate. The company expects PCS subscriber churn to spike to the upper 3% area in the third quarter, which will result in a modest net
