Nextel Communications Inc, Rutherford, New Jersey gets a clean bill of health from Moody’s Investors Service Inc in the wake of its deal with MCI Communications Corp: Moody’s affirmed at B-3 its senior notes and assigned a B3 rating to the company’s new senior notes. About $1,000m of debt is affected. Moody’s cited risks associated with Nextel’s start-up stage, minimal asset protection due to a balance sheet that consists of very high intangible assets, ever-intensyfying competition in the evolving market, and rapid technological development, but on the other side of the balance cites the fact that the ratings are supported by high industry growth opportunities, strong business alliance, large investment positions taken by MCI Communications Inc and Comcast Corp, and the solid support provided by Motorola Inc as its vendor of equipment.
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