The ratings on Sprint Corp. 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 and pricing pressures in the long-distance and data business. Sprint is a holding company, whose business is divided into two segments: The FON group and the PCS group. The PCS group comprises its wireless operations. PCS is also a tracking stock of Sprint that reflects the performance of the PCS group. The FON group is comprised of the Global Market Division (GMD), which includes the bulk of Sprint's business and consumer long distance; data and Internet businesses; the local division; and the
