S&P rates CenturyLink notes BB

Standard & Poor's said it assigned its BB issue-level rating and 3 recovery rating to CenturyLink Inc.'s aggregate $1.25 billion of senior notes due 2022 and 2042. The 3 recovery rating indicates expectations for meaningful recovery in the event of a payment default.

The BB corporate credit rating on CenturyLink is unchanged and the outlook remains stable, as the transaction is unlikely to have an impact on the company's credit measures, the agency said.

S&P said the ratings on CenturyLink reflect significant competition in its core consumer wireline phone business from cable telephony and wireless substitution; S&P's expectation for continued revenue and EBITDA declines because of ongoing access-line losses; the company's integration risk; and an aggressive shareholder-oriented financial policy with a substantial dividend payout, which limits debt reduction.

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