US West Inc’s move to acquire those two cable television properties in Atlanta has not gone down too well with Standard & Poor’s Corp, which says it may lower US West Inc’s preliminary senior debt rating from A-plus and US West Capital Funding Inc’s senior unsecured debt from A-plus, and its commercial paper ratings from A-1-plus, and US West Financial Services Inc’s senior unsecured debt from A-plus. However the double-A-minus senior debt and A-1′-plus commercial paper ratings of US West Communications Inc would not be affected. About $3,400m of rated debt is outstanding. The ratings agency is concerned at the $700m increase in debt US West will need to finance the $1,200m acquisition and the further financing necessary to upgrade the systems into full service broadband networks.
