The ratings on Sprint Corp. (Sprint) reflect the continuing cash flow improvement in its personal communication services (PCS) group and the strength of its local telephone operations. These factors are somewhat offset by increasing competition in the wireless industry, pricing pressures in the long-distance and data businesses, and leverage ratios that are currently weak for the rating. Sprint PCS performed well in 2001, with a consistent increase in market share, substantial margin and cash flow improvement, and progress on its migration to its next generation wireless platform. The PCS division turned EBITDA positive in the third quarter of 2000, and generated EBITDA of about $1.5 billion in 2001. However, in the fourth quarter of 2001, Sprint PCS experienced lower-than-expected subscriber
