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T-Mobile Buy of UScellular Credit Positive: S&P

T-Mobile’s proposed $4.4 billion buy of UScellular would be credit positive “because it will expand T-Mobile's scale and provide it with potentially material synergies” and won’t “materially affect T-Mobile's credit metrics,” S&P Global Ratings said Wednesday. The agreement was announced…

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Tuesday (see 2405280047). “T-Mobile estimates the deal will yield about $1 billion of annual run-rate cost and capital expenditure savings, which we view as achievable based on previous transactions,” S&P said. The firm warned that the expected $2.2 billion-$2.6 billion in integration expenses should be “modestly dilutive to the company's cash flow over the near term.”