According to a statement by Standard & Poor, SoftBank ratings were lowered from BBB to the highest non-investment grade of BB+, with a stable outlook. This cut in ratings was made after SoftBank won the acquisition deal of Sprint Nextel Corp., the third-largest mobile carrier in the US.
In the wake of its lowered credit rating, SoftBank shares dropped 3.6% to JPY5,670. A lower credit rating meant a higher risk of default and a rise in borrowing costs.
SoftBank, owned by Japanese billioniare, Masayoshi Son, won the Federal Communications Commission's (FDC) approval of its US$21.6 billion bid, defeating Dish Network Corp.'s competing bid. According to the FDC, although the deal would give Son entry into the US market, the approval was issued with the public's interest in mind.
For the 55-year-old Japanese billionaire, his company's acquisition of Sprint would take him a step closer to fulfilling his ambition, which is to make the Tokyo-based company into the biggest mobile phone operator in the world.
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