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Fitch: T-Mobile (NR/BBB/BBB+) Rating Unchanged Following UScellular Acquisition

COMMUNICATIONS
  • Acquisition aligns with growth strategy to gain stronger rural market presence; top 3 U.S. mobile provider with 121M customers.
  • Deal is manageable for the company given EBITDA leverage mid-2.0x (against thresholds given at last upgrade of 2.2x and 2.75x), revenue and EBITDA increase <5%.
  • Assumed use of cash though they note the possibility of new borrowings along with the debt exchange.
  • Regulatory scrutiny expected; integration risk mitigated by Sprint and Ka’ena acquisitions.

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