On May 13, 2005, Standard&Poor's Ratings Services announced that its ratings on Sprint Corp. (BBB-/Watch Pos/--) remain on CreditWatch with positive implications. However, the CreditWatch implications on ratings of debt issued by operating companies in Sprint's local telephone division have been revised to developing from positive. This reflects uncertainty about the ratings of this debt if the local division is spun off following Sprint's proposed merger with Nextel Communications Inc. (BB+/Watch Pos/--). All ratings were initially placed on CreditWatch with positive implications on Oct. 8, 2004, based on wireless operating improvement and financial profile strengthening. The ratings remained on CreditWatch following the announcement of the Nextel merger agreement. Standard&Poor's expects to resolve the CreditWatch listing on
