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DENVER (AP) _ Moody’s Investors Service downgraded its long-term credit rating for Qwest Communications International Inc. on Thursday, a week after Standard & Poor’s also stripped the telecom of its investment-grade rating.
Moody’s said it was concerned about Qwest’s liquidity situation, slowing growth in its local phone business, debt, federal inquiries into accounting practices, and general corporate leadership.
``Although we are disappointed with the actions taken by Moody’s and S&P, these firms traditionally tend to follow one another on ratings adjustments,″ Qwest chief financial officer Robin Szeliga said in a news release. ``We are concerned that today’s adjustment by Moody’s, as with S&P, is not based on any new information.″
She noted that Moody’s kept its investment-grade rating on the local services business.
Qwest shares were down 6 cents to $5 in midday trading Thursday on the New York Stock Exchange.
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