Fitch rates CenturyLink loans BBB-

Fitch Ratings said it assigned a BBB- rating to CenturyLink, Inc.'s $1 billion senior revolving credit facility.

The issuer default rating is BBB-. CenturyLink's ratings remain on Rating Watch negative, where they were placed on April 22 following CenturyLink and Qwest Communications International, Inc.'s plans to merge.

Fitch said it expects the new credit facility to provide CenturyLink with sufficient liquidity prior to the close of the Qwest deal. Upon the close of the acquisition, the facility will be expanded to $1.7 billion, and Qwest's existing $1.035 billion senior secured revolving credit facility due in September 2013 will be terminated. The CenturyLink facility will be in place until Jan. 19, 2015.

CenturyLink's ratings are supported by its high EBITDA margins and strong cash flow before capital spending and dividends, the agency said.

Constraining factors include the effects of the slow economic recovery on results, as well as competition from cable operators and wireless substitution, the agency noted.

© 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.