S&P: CenturyTel, Embarq unchanged

Standard & Poor's said that its ratings on CenturyTel Inc. (BBB-/stable/A-3) and Embarq Corp. (BBB-/stable) are not affected by CenturyTel's definitive agreement to acquire Embarq in a stock-for-stock transaction.

Given the change of control requirements under the Embarq bank credit facility, the agency said it expects this facility to be repaid or refinanced in conjunction with the transaction.

As such, the agency said it would withdraw the ratings on Embarq's senior unsecured term loan and revolver when they are repaid.

The agency noted that the combined company is not expected to have a materially different business or financial risk profile than those of the two stand-alone companies.

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