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Prospect News home > News index > List of issuers Q > Headlines for Qwest Capital Funding Inc. > News item |
S&P gives CenturyLink notes B+
S&P said it assigned its B+ issue-level rating and 6 recovery rating to CenturyLink Inc.’s proposed $750 million senior unsecured notes due 2026. The 6 recovery rating indicates S&P’s expectation for negligible (0%-10%; rounded estimate: 5%) recovery in the event of a payment default.
Proceeds along with balance sheet cash are expected to be used to repay $850 million of Qwest Corp.’s outstanding 6 7/8% senior notes due 2033. Qwest Corp. is a wholly owned subsidiary of CenturyLink.
“At the same time, we are placing our B+ issue-level rating on Qwest Capital Funding Inc.’s senior unsecured debt on CreditWatch with positive implications to reflect the potential reduction in the structurally senior debt at Qwest Corp., which will improve the recovery prospects for the QCF noteholders. In resolving the CreditWatch, we may raise our issue-level rating by as much as two notches to BB,” said S&P in a press release.
The transaction won’t affect CenturyLink’s credit metrics so S&P said the company’s BB rating and stable outlook are unchanged.
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