We are assigning 'BB' issue-level and '3' recovery ratings to Sprint Nextel's proposed $1.3 billion senior unsecured notes due 2017. We also are affirming the 'BB' corporate credit rating on the company. Based on our expectations for continued earnings pressure, the new notes essentially exhaust the company's debt capacity for the rating and as a result, Sprint Nextel will be sensitive to weaker-than-anticipated operating performance. On Aug. 11, 2009, Standard&Poor's Rating Services assigned a 'BB' issue-level rating to Overland Park, Kan.-based wireless carrier Sprint Nextel Corp.'s proposed $1.3 billion senior unsecured notes due 2017, to be drawn from its shelf registration. The recovery rating is '3', indicating expectations for meaningful recovery (50% to 70%) in the event of
