NEW YORK (Standard&Poor's) July 29, 2009—Standard&Poor's Ratings Services said today that its ratings on Overland Park, Kan.-based wireless carrier Sprint Nextel Corp. (BB/Negative/--) are not affected by the company's definitive agreement to acquire Virgin Mobile USA Inc. (B-/Stable/--) in a deal valued at $688 million: $483 million of equity, which includes Sprint Nextel's 13.1% fully diluted ownership stake, and net debt of $205 million. Sprint Nextel is going to use existing cash to retire Virgin Mobile's outstanding net debt at transaction close. We expect the transaction to be completed in the fourth quarter of 2009 or in early 2010. We do not expect the acquisition of Virgin Mobile USA to materially change Sprint Nextel's business or
