Moody's assigns CenturyTel notes Baa3

Moody's Investors Service said it has assigned Baa3 ratings to CenturyTel Inc.'s series P notes and Series Q notes maturing Sept. 15, 2039 and Sept. 15, 2019, respectively.

Moody's analyst Dennis Saputo said: "CenturyTel's Baa3 long-term rating and stable outlook reflect the predictability and strength of its cash flow from operations, which is expected to benefit from its much larger operating scale as a result of the merger with Embarq. Moderate leverage, very good liquidity, and management's commitment to maintain an investment-grade rating also support the rating."

However, CenturyTel's core operations will likely continue to experience relentless pressure due to a secular decline of its local exchange services business and increasing competition from cable operators and substituting technologies, such as wireless and VoIP, the agency said.

Consequently, the declining trends in revenue and access lines are unlikely to reverse over the rating horizon, Moody's added.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.