Qwest Corp.'s bank debt strengthened slightly after Standard & Poor's raised its parent company Qwest Communications International's corporate credit rating from B- to BB-. By midweek, Qwest's $1.25 billion floating-rate tranche traded in the 103 1/2-104 context from the 103-103 1/4 where it started the week. The $500 million, 6.95% fixed-rate debt traded within the 96-97 range up from the 95 1/4-95 3/4 level.
One trader attributed the upgrade to Qwest's solid results and improved business profile. According to S&P, the ratings reflect the relatively good overall business risk profile and the company's positioning. A spokesman at Qwest did not return calls. Merrill Lynch, Credit Suisse First Boston and Deutsche Bank hold lead roles on the facility.