DENVER-Qwest Communications International Inc.’s stock price dropped more than 30 percent yesterday following news that the U.S. Attorney’s office had begun a criminal investigation of the telecommunications service provider and a downgrade of the company’s debt rating to junk status by both Moody’s Investor Services and Fitch Ratings. A third ratings company, Standard & Poor’s, said it would keep its current rating, but would watch Qwest closely for a possible downgrade.
While the U.S. Attorney’s office did not disclose what it was looking into, the investigation will join an ongoing Securities and Exchange Commission investigation into Qwest’s accounting practices.
