Moody's keeps Qwest on review for upgrade

Moody's Investors Service said it is maintaining the review for possible upgrade of the B1 corporate family rating of Qwest Communications International Inc. and related entities after the company announced plans to repurchase, over a two-year period, $2 billion of its common stock.

The ratings were originally placed on review on Aug. 1 because the company's revenue trends and free cash flow generation ability may be better than previously anticipated, the agency said.

Moody's review will focus on the company's plans for further debt reduction in light of the announced share repurchase plan, Qwest's revenue prospects and the profitability and cash flow generating capacity of Qwest's individual operating segments over the next few years. In addition, the agency said it will evaluate the potential for additional shareholder returns.

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