Fitch rates Qwest notes BB+

Fitch Ratings said it assigned a BB+ rating to Qwest Communications International, Inc.'s proposed $500 million issuance of senior unsecured notes due 2018. The new notes will be guaranteed by wholly owned subsidiaries Qwest Services Corp. and Qwest Capital Funding, Inc. on a senior unsecured basis. The company's issuer default rating is BB.

The outlook is stable.

The notes will rank pari passu with Qwest's existing senior unsecured notes due February 2011, 2014 and 2015 and will be governed by the same indenture.

The ratings incorporate the scope, scale and consistent cash flow generated by Qwest Corp.'s local exchange business, Fitch said, and the stable operating trends of Qwest's enterprise segment.

The agency said it continues to believe that Qwest's credit profile is strong within the current ratings category. However, its competitive position is weaker when compared to its regional bell operating company peer group, the agency added.

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