Standard Pu Erqie Softbank (9984.T)'s debt rating two notches "junk" on the grounds that financial risk, one billion of its $ 21.6 to buy U.S. wireless carrier Sprint Nextel Corp. company (SN) and Sprint's proposal acquisition of Clearwire Corporation (CLWR.O).
Downgrade sparked Softbank shares fell, but analysts said the decline was mainly due to profit-taking after the stock has soared expected Sprint deal, on Friday received final regulatory approval.
Standard & Poor's in March warned that if the end of the Sprint deal, it would cut Softbank, its highest non-investment grade, from BB + rating.
Softbank downgrade unlikely to increase financing costs, which should be able to rely on funding from the Bank of Japan, said Wang Hao Ming, BNP Paribas (BNP Paribas) in Tokyo, a senior telecom analyst.
Softbank in May that it will issue a 400 one billion yen ($ 396 million) of retail bonds in the Japanese market, while in April it presents a double batch of bond issues, the size of the dollar and the euro equivalent of $ 3.3 one billion from $ 2 billion.
S & P said the outlook is stable Softbank, because rating agencies are expected to grow steadily, Japan's mobile business in Sprint's operating results and gradual improvement of the merger brings cost savings and other benefits.
Moody's Investors Service on June 12, said Softbank's offer for Sprint will have limited impact on its rating - now the agency's lowest investment grade Baa3 rating. The rating has been put on review for possible downgrade.
Softbank shares fell after news of downgrade, the trading day down nearly 5 percent of their monthly minimum 5,600 yen. They end up in losses compared to 5680 yen, down 3.4%.
Softbank's five-year CDS quotes about 210 basis points Monday after relegation from last Friday widened about 20 basis points.
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