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S&P revises Sprint's CreditWatch implications to developing

S&P Global Ratings on May 22 revised CreditWatch placement of its ratings on Sprint Corp., including the B issuer credit, to developing from positive.

S&P Global Ratings took the ratings action after Sprint indicated that the company's service revenue trends would be lower in the June 2019 quarter compared with the year-earlier period, primarily due to promotional activity and the loss of postpaid customers in previous quarters.

Ratings expects Sprint's EBITDA will decline in 2019 and the company will continue to report free operating cash flow deficits that could result in higher leverage over the next couple of years.

The company lost 189,000 postpaid phone subscribers in the quarter ended March 31, compared to a gain of 55,000 in the year-earlier period.

In addition, the rating agency placed the issue-level rating on Sprint's secured debt on CreditWatch with negative implications, indicating the ratings could be lowered if the company's deal with T-Mobile US Inc. is not approved.

This S&P Global Market Intelligence news article may contain information about credit ratings issued by S&P Global Ratings. Descriptions in this news article were not prepared by S&P Global Ratings.