Fitch cuts CenturyLink, rates facilities

Fitch Ratings said it downgraded the long-term issuer default ratings assigned to CenturyLink, Inc. and its subsidiaries to BB from BB+ and removed the ratings from negative watch.

In addition, the agency affirmed the issuer default ratings for Level 3 Communications, Inc. (LVLT) and its subsidiary, Level 3 Financing, Inc.

The outlooks are stable.

Fitch said the action is due to CenturyLink's completion of the acquisition of LVLT, which closed on Nov. 1 following approval by the Federal Communications Commission.

Fitch also assigned a BB+/RR1 rating to CenturyLink's $1,575,000,000 senior secured term loan A, $370 million senior secured term loan A-1 and $2 billion senior secured revolving credit facility, all due October 2022.

The agency previously assigned a BB+/RR1 rating to CenturyLink's $6 billion senior secured term loan B. The term loan B was fully funded in June and the proceeds placed in escrow. The senior secured term loans and revolver comprise the $9.9 billion in secured financing commitments for the LVLT acquisition.

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