September 26, 2012 / 3:50 PM / 5 years ago

TEXT-S&P rates Level 3 Communications term loan 'B+'

Sept 26 - Standard & Poor's Ratings Services said today that it assigned its
'B+' issue-level rating and '1' recovery rating to Level 3 Financing Inc.'s $1.2
billion term loan (tranche B-II 2019) due 2019. Level 3 Financing Inc. is a
wholly owned subsidiary of Broomfield, Colo.-based Level 3 Communications Inc.
 (Level 3). The '1' recovery rating on this senior secured loan reflects
our expectation of very high (90% to 100%) recovery of principal in the event of
a default. The new facility will repay an aggregate of $1.2 billion of two term
loans (tranches B-II and B-III) due 2018. Other ratings on Level 3 and
subsidiaries, including the 'B-' corporate credit rating and the positive
outlook, are not affected by the new notes. Approximately $8.4 billion of debt
was reported at June 30, 2012 (excluding third-quarter financing transactions).

Level 3 is a facilities-based, global integrated provider of a range of 
communications services including voice, data, and broadband on its extensive 
long-haul and metropolitan fiber networks. The company's October 2011 $3 
billion acquisition of Global Crossing Ltd. expanded its footprint, especially 
in Latin America. Level 3 noted that as of the second quarter of this year, it 
had realized about 40% of what it ultimately projects to be $300 million of 
operating synergies from the Global Crossing acquisition. The positive outlook 
cites the potential for a one-notch upgrade if Level 3 demonstrates that it is 
successfully integrating Global Crossing and, further, is on track to realize 
at least the bulk of projected operating synergies. (For the complete 
corporate credit rating rationale, see the summary analysis on Level 3, to be 
published on RatingsDirect immediately following the release of this article.)

     -- Business Risk/Financial Risk Matrix Expanded, Sept. 18, 2012
     -- U.S. Telecom And Cable Companies' Maturities Are Manageable, But 
Lower-Rated Issuers Face Some Liquidity Challenges, July 23, 2012
     -- U.S. Telecom And Cable Companies, Strongest To Weakest, July 13, 2012
     -- U.S. Telecom And Cable Ratings Should Be Stable Overall During Weak 
Economic Recovery, July 13, 2012
     -- A Matter of Policy: U.S. Telecom Companies Maintain High Dividend 
Payouts, But For How Long?, May 30, 2012
     -- A Matter of Policy: U.S. Cable And Satellite-TV Companies Ratchet Up 
Shareholder Payouts, May 16, 2012
     -- Top 10 Investor Questions: U.S. Telecom and Cable Industries, May 10, 
     -- Assessing The Four-Notch Rating Gap Between The Two U.S. 
Direct-To-Home Satellite Video Operators, May 9, 2012
     -- Liquidity Descriptors For Global Corporate Issuers, Sept. 28, 2011

Level 3 Communications Inc. 
 Corporate Credit Rating                    B-/Positive/--

New Ratings
Level 3 Financing Inc.
 $1.2 bil. term loan due 2019               B+
   Recovery Rating                          1

Complete ratings information is available to subscribers of RatingsDirect on 
the Global Credit Portal at All ratings affected 
by this rating action can be found on Standard & Poor's public Web site at Use the Ratings search box located in the left 
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