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 elevated 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 operating and financial performance has shown signs of improvement over the past few quarters because of modestly improving subscriber trends on its code division multiple-access (CDMA) network, which added 276,000 customers during third-quarter 2010. Improving subscriber trends on the CDMA network are
