S&P Cuts Sprint's Credit Rating On Challenging Industry Environment

Standard & Poor's Ratings Services on Tuesday downgraded Sprint Corp.'s to 'B' from 'B+,' citing a challenging environment for the wireless industry. "The downgrade reflects our view that Sprint will be challenged to profitability grow its subscriber base and reverse negative FOCF trends sufficiently to improve its longer-term liquidity position," Allyn Arden, a credit analyst at Standard & Poor's, in a statement. S&P assigned a stable outlook on the rating, noting that the company's cost reduction effort will provide it with some stability in the near term. Shares of Sprint were flat in the extended trade after sinking 9.8% in the regular session.