NEW YORK—Standard & Poor’s downgraded its long-term and short-term corporate credit ratings on telecommunications provider Qwest Communications International Inc. due to an increasing risk profile of the company over the past several quarters and Qwest’s $26.5 billion in debt at the end of the first quarter.
The credit ratings agency noted several external factors could also constrain Qwest’s ability to restore investor confidence and reestablish management credibility including a series of pending shareholder lawsuits and a Securities and Exchange Commission investigation of several accounting practices.
Qwest said it was disappointed with the downgrade, pointing out it was concerned that the ratings change was not based on any new information and that it was unclear on what prompted the action.
