The ratings on Sprint Corp. reflect cash flow diversity from the company's position as a major provider of wireless, long-distance, and local telecommunications services. Wireless operations fuel the company's growth and are bolstered by relatively well-protected, but mature, incumbent local exchange operations in smaller markets. Healthy free cash flow from the local and long-distance segments, as well as modest free cash flow from wireless operations, gives Sprint good liquidity. Tempering factors include competition, slowing growth, and capital spending needs in the wireless segment; double-digit percentage revenue erosion in the very competitive long-distance business; and low single-digit access line and revenue declines in local operations. Despite Sprint's solid financial profile, the business risk concerns mentioned and overall transitional industry conditions currently
