S&P; Downgrades Us West Debt

Standard & Poor’s has lowered its rating for about $8.8 billion of US West’s debt and preferred stock, saying the phone company’s planned buyout of Continental Cablevision has weakened its credit quality.

At the same time, Standard & Poor’s upgraded its rating for about $5.5 billion of Continental’s outstanding debt Monday. It said the cable television company’s financial outlook would improve under a US West buyout.

Despite the downgrade, Englewood-based U S West and Communications Group retained an “investment-grade” rating.

Standard & Poor’s cut parent company US West Inc.’s senior unsecured debt ratings to BBB+ from A+ and lowered US West Capital Funding’s commercial paper rating to A-2 from A-1.

US West Communications’ senior unsecured debt rating was cut to A+ from AA-.