Moody's puts Global Crossing under uncertain review

Moody's Investors Service said it will review Global Crossing Ltd.'s ratings in light of news that the company has agreed to be acquired by Level 3 Communications Inc. in a share-exchange transaction.

While the transaction makes good business sense for both Global Crossing and Level 3, it is not clear whether Global Crossing's unconsolidated credit profile remains largely unchanged or improves as a result of the transaction, Moody's said.

Therefore, the agency said it placed the ratings on review with direction uncertain.

In the interim, its B3 corporate family and probability of default ratings remain unchanged, as does the B2 (LGD 3, 33%) rating on its senior secured notes and Caa2 (LGD 5, 84%) rating on its senior unsecured notes.

It should be noted that Global Crossing's notes contain change of control provisions, Moody's added.

The agency said it does not expect the ratings for any of Global Crossing's debt to be downgraded.

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