Moody's cut Sprint's credit rating to B3 from B1, or six levels below investment-grade, citing pressure from "brutal competition" in the U.S. wireless industry and concerns that Sprint will need "significant" additional funding, Bloomberg reported.
A Sprint spokesman told Bloomberg the company doesn't plan to seek additional capital from the debt or equity markets and is working on a funding plan with Softbank (SFTBF) , its majority shareholder.
Sprint shares fell 5.6% to $4.68.
Comcast (CMCSA) plans to create a new unit to sell Internet and phone services to large businesses across the country, even outside its service areas, to help lure customers away from telecom providers such as AT&T (T) and Verizon (VZ), the Wall Street Journal reported Wednesday.
Comcast gained 1.1% to $57.74. AT&T was largely unchanged at $32.93 while Verizon declined half a percent to $46.17.
EarthLink (ELNK) dropped 5.4% Wednesday to close at $8.35 after it went ex-dividend. A cash dividend payment of 5 cents a share is scheduled to be paid on Oct. 2. Atlanta-based EarthLink is an IT services, network and communications provider.
Sky-mobi (MOBI) fell 5.5% to $2.75, on no apparent news. The company is a China-based mobile application platform.