The ratings on Overland Park, Kan.-based wireless carrier Sprint Nextel Corp. reflect an aggressive financial risk profile characterized by its elevated leverage of about 4.8x debt to EBITDA, including Standard&Poor's Ratings Services' adjustments, and uncertainty related to future funding plans for majority-owned wholesale partner Clearwire Corp. The ratings also reflect weak profitability measures relative to its peer group; significant competition from other wireless carriers, which is particularly important as the industry continues to show signs of maturation; and elevated—albeit improving—customer churn rates. Mitigating factors include Sprint Nextel's position as the third-largest wireless carrier in the U.S., improving post-paid subscriber trends, a strong portfolio of spectrum licenses, and industry-leading data penetration. Sprint Nextel's operating performance has improved over the
