CORPORATESISSUER COMMENT 28 SEPTEMBER 2015SPRINT COMMUNICATIONS,INC.(S)Moodys Sr. Unsecured Rating B1Moodys Outlook NEGBond-Implied Rating B1CDS-Implied Rating Caa1EDF-Implied Rating NAAs of 9/25/2015ANALYST CONTACTSAllerton G. Smith 212-553-4058 Sr Dir-Sr Research Analyst allerton.smith@moodys.comABOUT CAPITAL MARKETS RESEARCHAnalyses from Moodys Capital Markets Research, Inc. (CMR) focus on explaining signals from the credit and equity markets. The publications address whether market signals, in the opinion of the groups analysts, accurately reflect the risks and investment opportunities associated with issuers and sectors. CMR research thus complements the fundamentally-oriented research offered by Moodys Investors Service (MIS), the rating agency.CMR is part of Moodys Analytics, which is one of the two operating businesses of Moodys Corporation. Moodys Analytics (including CMR) is legally and organizationally separated from Moodys Investors Service and operates on an arms length basis from the ratings business. CMR does not provide investment advisory services or products.View the CMR FAQ Contact the CMR team Follow us on TwitterMoodys Analytics markets and distributes all Moodys Capital Markets Research, Inc. materials. Moodys Capital Markets Research, Inc. is a subsidiary of Moodys Corporation. Moodys Analytics does not provide investment advisory services or products. For further detail, please see the last page.Market Signals ReviewSprint Communications, Inc. : Two Market-Implied Ratings Decline The CDS- and bond-implied ratings for Sprint Communications, Inc. both worsened over the last ninety days (Figure 1). These market-implied ratings movements may be a reflection of investor concerns over mounting operating challenges for the company. These issues contributed to Moodys September 15 downgrade of the company by two-notches to B1, discussed in the Ratings View section below.FIGURE 1. SPRINT: MOODYS AND MARKET-IMPLIED RATINGS, 90 DAYS (DAILY DATA)Sprint Communications CDS-implied rating is Caa1, down by one notch from B3 90 days ago. The CDS-implied rating has not been lower than Caa1 over the prior three years, save for April 1of this year, when it was Caa2.MOODY'S ANALYTICS CORPORATES2 28 SEPTEMBER 2015 MARKET SIGNALS REVIEW: SPRINT COMMUNICATIONS, INC. : TWO MARKET-IMPLIED RATINGS DECLINEThe bond-implied ratings high point over the last three months was Ba1, which it attained on several different dates. It has now slipped three notches lower to B1. The bond-implied rating has not been so low since May 14, 2012.We do not publish an EDF'-implied rating for Sprint Communications, Inc. The EDF-implied ratings for SoftBank Group Corp. and Sprint Corporation are each B3. SoftBank Group owns Sprint Corp., which owns Sprint Communications.According to our ratings gap-conditioned transition matrices, companies rated B1 with a bond-implied rating of B1 outperformed the broad market 52% ...
