Fitch may cut CenturyTel, up Qwest

Fitch Ratings said it placed on Rating Watch negative CenturyTel, Inc.'s long-term issuer default rating of BBB-, senior unsecured revolving credit facility of BBB-, senior unsecured debt of BBB-, short-term issuer default rating of F3 and commercial paper rating of F3, along with Embarq Corp.'s long-term issuer default rating of BBB-.

Fitch also said it placed on Rating Watch positive Qwest Communications International, Inc.'s issuer default rating of BB, senior unsecured notes of BB+ and convertible senior notes of BB, along with Qwest Corp.'s issuer default rating of BB, Qwest Services Corp.'s issuer default rating of BB and Qwest Capital Funding's issuer default rating of BB and senior unsecured notes of BB.

The agency also said it affirmed Embarq's senior unsecured notes at BBB- and bank facility rating at BBB-, Carolina Telephone & Telegraph's debentures at BBB-, Embarq - Florida, Inc.'s first mortgage bonds at BBB, Qwest Communications International, Inc.'s senior secured credit facility at BBB-, Qwest Corp.'s senior term loan at BBB- and senior unsecured notes at BBB-.

The actions reflect the proposed merger of CenturyTel and Qwest in an all-stock transaction, Fitch said.

Following the merger, CenturyTel's shareholders will own slightly more than 50% of the company and four Qwest directors will join CenturyTel's existing board of directors, the agency said.

The transaction is expected to close in the first half of 2011, following the regulatory and shareholder approvals.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.