SoftBank Downgraded By Two Notches To ‘Junk’ Status

Standard & Poor’s Ratings Services downgraded SoftBank’s debt rating by two notches to ‘junk’ status, after its Sprint acquisition got regulatory clearances. The rating agency cut SoftBank Corp (OTCMKTS:SFTBF) (TYO:9984)’s rating to BB+, which is the highest junk grade rating, from BBB. According to a report published last week, the Federal Communications Commission has voted in favor of SoftBank’s acquisition of 78 percent of Sprint Nextel Corporation (NYSE:S). The approval also covered Sprint Nextel’s bid to acquire Clearwire Corporation. Standard & Poor’s feels SoftBank Corp (OTCMKTS:SFTBF) (TYO:9984)’s debt will increase considerably as a result of acquiring 78 percent stake in the third…