S&P lifts SunCom Wireless outlook to positive

Standard & Poor's said it revised its outlook for SunCom Wireless Holdings Inc. to positive from negative following SunCom's announcement that it had reached a consensual agreement with its largest subordinated bondholders to exchange debt for common stock.

The outlook revision reflects a significant reduction in high-coupon debt as a result of this pending exchange, the agency said, noting that all ratings, including the CCC+ corporate credit rating and those on wholly owned subsidiary SunCom Wireless Inc., were affirmed.

About 91% of SunCom's 9.375% and 8.75% senior subordinated noteholders have agreed to exchange debt totaling about $708 million for common stock, the agency added, noting that the resulting $64 million reduction in annual interest payments materially improves liquidity.

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