Level 3’s Money Situation ‘Tantamount to Default’

Level 3 Communications Inc. (LVLT) is having a very tough go of things. In between trying to buy back stocks to stave off bankruptcy, the Colorado-based carrier received a big blow on Monday from ratings firm Standard & Poor’s.

S&P cut Level 3’s ratings to selective default.

“These rating actions follow the completion of below-par debt tender offers for two of the three issues, and Standard & Poor's viewed these offers as distressed and, as such, tantamount to default," said Susan Madison, an S&P credit analyst, in a prepared statement.

Level 3’s stocks closed at 65 cents on Monday, a drop of 4.41 percent.