Fitch affirms CenturyLink

Fitch Ratings said it affirmed CenturyLink, Inc.'s issuer default rating at BBB-, short-term issuer default rating and commercial paper at F3 and senior revolving credit facility and senior debt at BBB-. Fitch also affirmed Embarq Corp.'s BBB- issuer default rating and senior notes.

The ratings were removed from Rating Watch negative and assigned a stable outlook.

The actions reflect Fitch's review of the Rating Watch status following the placement of the companies' ratings on Rating Watch on April 22, 2010, the agency said.

CenturyLink and Qwest Communications International, Inc. have an agreement to merge in an all-stock transaction, the agency added. The transaction is expected to close on April 1.

The ratings consider the expectations that CenturyLink will demonstrate a very gradual improvement in its revenue profile in combination with solid leverage, strong free cash flows and strong liquidity, the agency said.

The ratings also consider the decline of traditional voice and long distance revenues, primarily in the consumer sector, from wireless substitution and moderate levels of continuing cable telephony substitution, the agency added.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.