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NEW YORK-U S West Communications Inc.’s long-term debt ratings were downgraded from Aa3 to A2 by Moody’s Investors Service Inc. for several reasons.
Moody’s said it is concerned about public-policy issues, financial pressures associated with the restructuring of businesses within the U S West Inc. family into two separate holding companies, as well as the company’s ability to sustain credit characteristics proportional with other companies in the industry.
U S West Communications’ debt ratings, including the existing Prime-1 rating for short-term debt, remain under review for further downgrade pending clarification of the new corporate structure, possible future strategic initiatives and the associated investment requirements, said Moody’s.
