The ratings on Overland Park, Kan.-based wireless carrier Sprint Nextel Corp. reflect a weak business profile because of its elevated churn relative to its peers; declining post-paid subscribers; significant competition from other wireless carriers, which is particularly important as the industry continues to show signs of maturation; and rising leverage. Mitigating factors include Sprint Nextel's position as the third-largest wireless carrier in the U.S., a strong portfolio of spectrum licenses, industry-leading data penetration, and adequate liquidity. Sprint Nextel's weak operating and financial performance are the result of several factors, most notably the erosion of its high-margin post-paid subscriber base at a time when its competitors are experiencing healthy, albeit slowing, customer growth. While the company's code division multiple-access (CDMA) network
