S&P: Qwest still on watch, MCI on watch positive

Standard & Poor's said the ratings of Qwest Communications International Inc. (BB-/Watch Negative/--) and subsidiaries remain on CreditWatch negative.

Qwest has revised its counter bid to Verizon Communications Inc. for long-distance carrier MCI Inc. As such, ratings on MCI (B+/Watch Positive/--) remain on CreditWatch positive.

Qwest had originally offered to pay $3 billion in cash and $5 billion in stock for MCI, but has increased the cash component by about $455 million.

S&P said the positive CreditWatch listing for the MCI ratings reflects the company's potential acquisition by either Verizon or Qwest, both of which are more creditworthy entities.

The negative CreditWatch listing on the Qwest ratings reflects the higher degree of business risk that would result from its potential acquisition of MCI, according to S&P.

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