Earlier today, Standard & Poor's downgraded its rating for telecommunications service provider Level 3 to what Reuters calls "deeper into junk territory." The straw that wrenched the camel's back seemed to be Level 3's cash tender offers for debt due in 2008.
Because debt holders will get less than full value for their bonds, S&P said it views the cash tender offers as tantamount to a default that will not materially reduce the company's "onerous" $5.1 billion debt.
Thereare already some conversations in the Blogosphere about what this will do to Level 3's various VoIP-related service offerings.
What do you think? Let's get a discussion going here.