Recovery Report: Level 3 Communications Inc.'s Recovery Rating Profile Jul 12
Standard & Poors, July 2012
Abstract
Standard & Poor's Ratings Services is assigning its issue-level and recovery ratings to Level 3 Communications Inc.'s (Level 3) proposed $300 million of senior notes due 2019. The company intends to use the proceeds for general corporate purposes, including possible debt repayment. The issue-level and recovery ratings on existing debt remain unchanged. Our simulated default scenario contemplates a default during 2014, with continued economic weakness leading to declining revenues and competition and integration expenses pressuring gross margins. We assume that the company would be able to reorganize following a payment default and have valued the company at 4x expected default-level EBITDA to determine recovery prospects. Level 3 Financing's senior secured term loans are guaranteed and secured by certain assets of...
Companies mentioned in this report are: Level 3 Communications Inc.,Level 3 Financing Inc.
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
Research Type: Full Analysis
Level 3 Communications Inc.,Level 3 Financing Inc.
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