S&P rates CenturyLink notes BB

Standard & Poor's said it assigned its BB issue-level rating and 4 recovery rating to CenturyLink Inc.'s proposed senior notes due 2024 (amount to be determined).

The 4 recovery rating indicates an expectation for average (30%-50%; upper half of the range) recovery in the event of payment default.

The company intends to use net proceeds, along with borrowings from its $2 billion revolving credit facility (about $330 million amount outstanding as of Dec. 31, 2015), to repay all of the outstanding $1.184 billion senior notes due 2016 at wholly owned subsidiary Embarq Corp.

The BB corporate credit rating and stable outlook on CenturyLink are unchanged.

The transaction is unlikely to affect the company's key credit measures, including leverage, which was about 3.6 times as of Dec. 31, 2015.

The ratings incorporate S&P’s expectation that leverage will remain in the high-3 times area over the next couple of years.

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