Clearwire Gets Moody
First, as expected, Google (Nasdaq: GOOG) had to write down its investment in the operator to the tune of $355 million, following in the footsteps of Intel Corp. (Nasdaq: INTC) and others.
Perhaps more importantly for the firm's new CFO, David Sach, however, Moody's Investors Service has commenced coverage of the WiMax contender with a "Caa1" -- or "junk" grade, with a negative outlook.
The ratings agency reportedly said this reflects the company's "high financial and business risk given the startup nature of its operations."
Not good news for a company that is expected to want to raise more capital to finance network buildout in 2010. (See Analyst: Clearwire Will Launch Nine in '09.)
— Dan Jones, Site Editor, Unstrung