MCI’s Credit Rating Lowered: Standard & Poor’s...
From Times Staff and Wire Reports
MCI’s Credit Rating Lowered: Standard & Poor’s Corp., a major credit-rating agency, downgraded its rating on some of MCI Communication Corp.’s debt. S&P; said it lowered by one notch its ratings on MCI’s senior unsecured debt and subordinated debt due to MCI’s acquisition of Telecom USA Inc., another long-distance phone company. “The acquisition, which will likely be financed with borrowings of up to $1.5 billion, should initially result in a sharp deterioration in the capital structure (of MCI) and correspondingly higher fixed charges,” S&P; said. Kathleen Keegan, a spokeswoman for MCI, said the company was disappointed by the rating change.
