Fitch rates Qwest note BBB-

Fitch Ratings said it assigned a BBB- rating to Qwest Corp.'s proposed $400 million offering of senior unsecured notes due 2017, the proceeds of which will be used to refinance Qwest's 8 7/8% senior notes due 2031 and its 6% senior notes due 2007 and for general corporate purposes.

The outlook is stable.

The debt at Qwest is the most senior within parent company Qwest Communications International, Inc.'s consolidated debt structure, and Fitch said the BBB- senior unsecured rating reflects the debt's proximity to Qwest's valuable access lines.

Overall, the BB issuer default ratings assigned to Qwest Communications and its subsidiaries incorporate the scope, scale and relatively stable cash flow generated by Qwest's local exchange business, the reduced cash requirements of Qwest Communications' out-of-region businesses and Fitch's expectation of continued credit metric improvement and generation of material free cash flow, the agency said.

Fitch said its ratings also reflect the competitive pressure from ongoing product and technology substitution.

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