S&P; Cuts Qwest Credit Ratings to Junk Status

Qwest Communications International Inc.’s credit ratings were cut to junk status by Standard & Poor’s, which said the No. 4 U.S. local phone company may have trouble fending off competition in a weak economy.

Denver-based Qwest is trying to avoid a cash crunch by selling more than $10 billion of assets, including its phone book business.

S&P; cut Qwest’s long-term credit rating one notch to BB-plus, its highest junk grade, from BBB-minus, and its short-term rating to B from A-3. It warned that it may cut the ratings again.

Qwest had $26.5 billion in debt as of March 31, S&P; said.

Shares of Qwest closed unchanged at $5.03 on the New York Stock Exchange.