A rating was assigned to Sprint Capital Corp.'s proposed $2 billion senior unsecured notes on March 7, 2002. The notes are unconditionally guaranteed by Sprint Corp. (Sprint), and the proceeds will be used to repay commercial paper and for general corporate purposes. The ratings on 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 business, and leverage ratios that are currently weak for the rating. Sprint is a holding company whose business is divided into two segments: The FON group and the PCS group. The PCS group comprises
