Standard & Poor’s Ratings Service on Wednesday said it expects to raise part of Level 3 Communications Inc.’s (LVLT) corporate credit rating, two days after declaring the carrier’s financial situation as “tantamount to default.”
Now that Level 3 has completed its tender offer for 2009 notes, S&P removed those 2009 note ratings from CreditWatch with negative implications. However, Level 3’s corporate credit rating remains at ‘selective default,’ where S&P placed them on Dec. 29.
S&P also lowered the issue rating on Level 3’s 6 percent convertible subordinated notes from ‘C’ to ‘D.’ The analyst firm further kept its issue rating on all of Level 3’s other debt on CreditWatch with negative implications until it can assess recovery prospects for each debt issue.
Still, with its tender offers wrapped, Level 3 could be looking to a brighter future.
“Now that all tender offers are complete, we expect to raise Level 3’s corporate credit rating to ‘B-‘ with a stable outlook and resolve the CreditWatch for all issue ratings in the very near term,” said Susan Madison, a credit analyst for Standard & Poor’s, in a prepared statement.
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October 23 2018 @ 17:53:03 UTC