On Dec. 15, 2004, Standard&Poor's Ratings Services said that its ratings on Sprint Corp. (BBB-/Watch Pos/--) and Nextel Communications Inc. (BB+/Watch Pos/--) remain on CreditWatch with positive implications following the announcement of the proposed merger of the two companies. The combination would create the third-largest nationwide wireless carrier, serving more than 40 million subscribers (including affiliates and partners). The transaction is subject to shareholder and regulatory approval. Based on preliminary information, and if consummated under the proposed terms, Standard&Poor's anticipates that the rating of the merged entity would be either 'BBB-' or 'BBB'. The ratings on Sprint were initially placed on CreditWatch with positive implications on Oct. 8, 2004, based on the company's steady wireless operating
