Qwest Communications International was rumored to have traded a couple of times in the high 80s context last week, flat compared to where it was moving two weeks ago. The company announced last Tuesday that its was withdrawing its application to the Federal Communications Commission (FCC) to provide long-distance service in nine states due to lingering questions regarding the company's plans to restate its financial statements.
While Qwest was able to allay investors' bankruptcy fears by securing covenant relief for an existing $3.4 billion loan, a new $750 million credit, and sell its directories business, QwestDex, the company is not quite out of the water yet. Moody's Investors Service has kept the company's ratings on review for a possible downgrade, citing concerns that range from the company's historical financial statements to the company's ability to significantly de-lever going forward. A spokesperson declined to comment.