S&P rates Qwest notes BBB-

Standard & Poor's said it assigned a BBB- rating and 1 recovery rating to Qwest Corp.'s proposed senior notes.

The 1 recovery rating indicates 90% to 100% expected recovery in a default.

The proceeds, along with available cash or additional borrowings, will be used to fund a tender offer to spend up to $500 million to purchase certain of its outstanding notes due 2015 and 2016.

Qwest is a subsidiary of CenturyLink.

The long-term corporate credit rating on CenturyLink is unchanged at BB and the outlook remains stable.

The ratings reflect significant competition in its core consumer wireline phone business from cable telephony and wireless substitution, S&P said.

The ratings also consider an expectation for continued revenue declines because of ongoing access-line losses, the agency said.

Tempering factors include its favorable market position as the third-largest incumbent wireline carrier in the United States and its solid operating margins, S&P said.

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