Fitch rates Qwest Communications notes

Fitch Ratings said it assigned a CCC+ rating to Qwest Communications International Inc.'s proposed issuance of $1.75 billion senior unsecured notes. The offering will consist of $250 million floating-rate senior notes due 2009, $750 million senior notes due 2011 and $750 million senior notes due 2014.

Fitch rates Qwest Communications International's and Qwest Capital Funding Inc.'s senior unsecured debt CCC+ and Qwest Corp.'s senior unsecured debt and term loan facility B.

The outlook for Qwest Communications International remains negative.

Fitch said its ratings for Qwest Communications International and its subsidiaries reflect the company's highly leveraged balance sheet, the persistent challenges within its core wireline business, the high business risks associated with the company's long-haul voice and data business and the lack of clarity surrounding the continuing Securities and Exchange Commission and Department of Justice investigations.

Fitch noted it acknowledges the progress Qwest has made in terms of improving its liquidity position, reducing debt levels and addressing its cost structure. Through the combination of asset sales, debt tenders and exchanges, the company has reduced its outstanding debt by about $4.94 billion since year-end 2002.

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