Fitch: Sprint Nextel notes B+

Fitch Ratings said it assigned a B+ with a recovery rating of RR4 to Sprint Nextel Corp.'s two-tranche benchmark-sized offering.

This includes unsecured senior notes due 2020 and 2022.

The proceeds will be used for general corporate purposes, which may include redemptions or service requirements of outstanding debt, network expansion and modernization and potential funding of Clearwire.

The outlook is negative.

The ratings reflect the on-going execution risk both operationally and financially regarding several key initiatives that the company expects will improve cash generation, network performance and longer-term profitability, Fitch said.

Risks include achieving expected cost benefits associated with its network modernization and improving its competitive position with its 4G deployment, the agency said.

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