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Qwest Shares Fall on Moody’s News

July 3, 2002

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DENVER (AP) _ Shares of Qwest Communications International Inc. fell 10 percent Wednesday as Moody’s Investors Service indicated it might downgrade the telecommunications company’s credit rating.

Also Wednesday, The Wall Street Journal reported that part of the Internet network for KPNQwest, Qwest’s bankrupt European investment, had been shut down.

Representatives of KPN and Qwest, KPNQwest’s founders and two main shareholders, said they could not confirm the report. A spokesman for KPNQwest was not available for comment after hours Wednesday.

Thousands of customers were expected to be affected by a shutdown. But a KPN spokesman said KPN’s services were still operational because it had set up a network parallel to KPNQwest’s.

Qwest, meanwhile, has been working to move customers of the European fiber optic network to other networks, Qwest spokesman Chris Hardman said. The Denver-based telecommunications company has maintained that it does not expect service interruptions from problems at the bankrupt KPNQwest.

Qwest has a 47 percent share of KPNQwest.

Qwest shares closed Wednesday down 23 cents to $1.70 on the New York Stock Exchange.

Moody’s said it placed Qwest on its watchlist based on concerns over the company’s market access, liquidity and an investigation by the Securities and Exchange Commission into past accounting of revenue.

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On the Net:

http://www.kpnqwest.com

http://www.qwest.com

http://www.kpn.com

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