Qwest stock jumped another 4 percent today after gaining 8 percent Tuesday after the company posted its second consecutive profitable quarter. The stock is trading at a 4-year high, hitting $8.82 a share during trading today.
Moody’s Investors Service said this week that it considering raising its rating on the Qwest debt. Moody’s cited better-than-expected cash flow and unexpected revenue strength.
“In particular, Qwest’s ability to grow revenues and slow the cash burn at Qwest Communications Corp. has exceeded Moody’s expectations and offset softness in Qwest’s incumbent wireline revenue due to access line erosion,” Moody’s said in a research note.
Standard & Poor’s analyst Todd Rosenbluth raised Qwest from a “strong sell rating” to a “sell” rating.
Qwest said today that it is issuing $500 million in private securities to help pay for general corporate expenses, including repayment of floating rate indebtedness, and funding and refinancing investments in the company’s telecommunications assets.
