The Standard & Poor’s Ratings Service is taking a more positive view of telecom as certain leading companies raise more money from the debt markets than anticipated.
S&P analysts this week affirmed ratings on Frontier Communications (FTR), Level 3 Communications Inc. (LVLT) and Qwest Communications International Inc. (Q) That news came after each provider secured better loans from the credit markets than expected in this, a recession that’s slammed high-tech.
Frontier last week sold $600 million in five-year notes; it had only hoped to raise $300 million. Qwest, reaching for $325 million, wrung $750 million out of the markets Tuesday. And Level 3 on Monday secured a new round of funding from Bank of America – that tranche amounted to $220 million.
Some analysts contend these companies could be paving the way for other communications service providers to also get money out of what’s been a tight debt market over the past year.