Sprint's debt rating drops to 'junk' status

Sprint's debt rating drops to 'junk' status
By Angela Gunn, BetaNews
December 11, 2008, 3:22 PM

The nation's third largest mobile provider took a hit on its stock price Thursday after Moody's Investors Service downgraded Sprint Nextel's senior unsecured debt rating to Ba2, known more commonly as the "junk" rating.

Sprint's stock has dropped 84 percent since the beginning of 2008. It traded at a low of $1.35 in late November, though it's currently back up to the low $2 range. (At press time, shares were trading on the New York Stock Exchange at $2.09, down $0.33 on the day.