S&P: Level 3 on positive watch

Standard & Poor's said it placed its ratings on Level 3 Communications Inc., including the CCC+ corporate credit rating and its wholly owned subsidiary Level 3 Financing Inc. on CreditWatch with positive implications, affecting $6.7 billion of debt.

The agency added that this action reflects favorable operating trends, coupled with proposed opportunistic refinancing.

The company has released fourth-quarter and full-year 2006 operating results that indicate improved performance trends and a more stable pricing environment for long-haul transport and broadband communications services, S&P noted.

At the same time, the company has announced a series of financing transactions, including the repayment of $488 million of 12.875% notes due 2010 with proceeds from a new note offering and the refinancing of its existing $730 million senior secured credit facility, S&P added.

Taken together, these transactions are expected to improve liquidity by lowering interest expense and extending the company's maturity profile, S&P said.

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