Sprint - Nextel 2013 Annual Report Download - page 55

Table of Contents
In determining our expectation of future funding needs in the next twelve months and beyond, we have considered:
Our ability to fund our capital needs from external sources is ultimately affected by the overall capacity and terms of the banking and securities
markets, as well as our performance and our credit ratings. Given our recent financial performance as well as the volatility in these markets, we continue to
monitor them closely and to take steps to maintain financial flexibility at a reasonable cost of capital.
The following outlooks and credit ratings from Moody's Investor Service, Standard & Poor's Ratings Services, and Fitch Ratings for certain of Sprint
Corporation's outstanding obligations were:
We expect to remain in compliance with our covenants through the next twelve months, although there can be no assurance that we will do so.
Although we expect to improve our Sprint platform postpaid subscriber results, and execute on our network modernization and integration plans, if we do not
meet our expectations, depending on the severity of any difference in actual results versus what we currently anticipate, it is possible that we would not remain
in compliance with our covenants or be able to meet our debt service obligations, which could result in acceleration of our indebtedness. If such unforeseen
events occur, we may engage with our lenders to obtain appropriate waivers or amendments of our credit facilities or refinance borrowings, although there is no
assurance we would be successful in any of these actions.
A default under any of our borrowings could trigger defaults under certain of our our other debt obligations, which in turn could result in the
maturities being accelerated. Certain indentures that govern our outstanding notes also require compliance with various covenants, including covenants that
limit the Company's ability to sell all or substantially all of its assets, limit the Company and its subsidiaries' ability to incur indebtedness and liens, each as
defined by the terms of the indentures.
CURRENT BUSINESS OUTLOOK
The Company expects 2014 consolidated segment earnings to be between $6.5 billion and $6.7 billion and 2014 capital expenditures to be
approximately $8 billion.
The above discussion is subject to the risks and other cautionary and qualifying factors set forth under "Forward
- Looking Statements" and "Part I,
Item 1A. Risk Factors" in this report.
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projected revenues and expenses relating to our operations;
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continued availability of a revolving bank credit facility in the amount of $3.0 billion , which expires in February 2018 and was amended in February
2014 to provide for additional capacity of $300 million bringing the total capacity to $3.3 billion;
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any scheduled payments or anticipated redemptions related to capital lease and debt obligations assumed in the Clearwire Acquisition;
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anticipated levels and timing of capital expenditures, including the capacity and upgrading of our networks and the deployment of new
technologies in our networks, and FCC license acquisitions taking into consideration the 2.5 GHz spectrum acquired in the Clearwire Acquisition;
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anticipated payments under the Report and Order, as supplemented;
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any additional contributions we may make to our pension plan;
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any scheduled principal payments; and
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other future contractual obligations, including our network modernization plan, and general corporate expenditures.
Rating
Rating Agency
Issuer Rating
Unsecured Notes
Guaranteed Notes
Bank Credit
Facility
Outlook
Moody's
Ba3
B1
Ba2
Baa3
Stable
Standard and Poor's
BB-
BB-
BB+
BB+
Stable
Fitch
B+
B+
BB
BB
Stable