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US: S&P downgrades SoftBank rating following Sprint buyout approval

By  |  July 8, 2013
US: S&P downgrades SoftBank rating following Sprint buyout approval

Standard & Poor’s downgraded Japan-based telecom giant SoftBank to a BB+ credit rating, down from BBB, with a stable outlook following the company’s approval to acquire Sprint Nextel Corp. for $21.6 billion. The US Federal Communications Commission green-lit the deal July 5. S&P cited the rigorous competition Sprint will likely continue to face within the mobile telecom market in the next years, though said it expects the company’s performance to “improve gradually.” The BB+ rating is the highest non-investment credit grade. S&P announced the downgrade on Monday.

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