Qwest Corporation -- Moody's places CenturyLink's ratings on review for downgrade following Level 3 acquisition announcement

New York, October 31, 2016 -- Moody's Investors Service, ("Moody's") has placed CenturyLink, Inc.'s ("CenturyLink") ratings under review for downgrade, including the company's Ba2 corporate family rating ("CFR"), Ba2-PD Probability of Default Rating, the Ba3 senior unsecured rating, and all subsidiary debt ratings. The review is prompted by CenturyLink's agreement to purchase Level 3 Communications, Inc. ("Level 3") for $24.3 billion with a mix of 40% cash and 60% equity. Moody's expects CenturyLink's leverage (Moody's adjusted) to increase from 3.4x as of June 30, 2016 to 4.4x at FYE2018 as a result of the transaction. CenturyLink's SGL-3 speculative grade liquidity rating is not affected at this time. The transaction is expected to close by the end of third quarter of 2017 and is subject to approval by CenturyLink and Level 3 shareholders and regulatory approvals.

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