Fitch affirms Qwest

Fitch Ratings said it affirmed Qwest Communications International, Inc.'s issuer default rating at BB, senior secured credit facility at BBB-, senior unsecured notes (guaranteed by QSC) at BB+, senior unsecured notes at BB and senior convertible notes at BB.

The agency also affirmed the BB issuer default ratings of Qwest Corp, Qwest Services Corp. and Qwest Capital Funding at BB, Qwest's senior term loan and senior unsecured notes at BBB- and Qwest Capital Funding's senior unsecured notes at BB.

The outlook is stable.

The affirmation follows Qwest's announcement that its board of directors has declared a $0.32 annual dividend. Based on the current amount of common stock outstanding, the cash requirement to fund the dividend is approximately $575 million on an annual basis. The current stock repurchase program, which Fitch anticipates will have approximately $600 million of capacity remaining as of the end of 2007 will be completed over the course of 2008.

Fitch believes that the creation of a dividend will not materially limit Qwest's financial flexibility and that there is sufficient capacity within the current ratings to accommodate the dividend.

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