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To: pater tenebrarum who wrote (27448)	10/12/2000 12:40:47 PM
From: Les H	Read Replies (1) \| Respond to of 436258

Economeister requires registration. Also has story on Lucent and credit risks of customers: MOODY'S: LUCENT TECHNOLOGIES OUTLK REVISED TO NEG FROM STABLE 15:16 EDT 10/11 NEW YORK (MktNews) - Moody's Investor Services revised Wednesday the outlook for Lucent Technologies to negative from stable due to "financial and operational disappointments" coupled with uncertainties concerning a performance rebound, the debt rating agency said in a statement. The change in outlook follows a similar move by Standard & Poor's made earlier Wednesday. Moody's, however, confirmed its ratings for Lucent (senior unsecured at A2 and short term rating at prime-1). "The confirmation reflects the company's relatively unlevered financial structure, solid cash generating capacity and leading position in most of its markets, even considering recent performance," Moody's said. The rating agency, however, warned that Lucent has "fallen well behind" its leading competitor, Nortel Networks, in high-speed optic network systems while the circuit switched product market is mature and in a decline phase. Lucent's account receivable quality issue promises to continue to be a challenge for the company as many of its customers are having a harder time accessing capital markets and therefore will depend further on equipment suppliers for financing, said Moody's. The debt rating agency said that while Lucent said it plans to restructure its business, it does not automatically mean the company's long-term prospects are bright. "Moody's usually views efforts to enhance the business position and/or reduce costs as long term positive events," the agency said. "However, should the company's restructuring efforts fail to adequately address earnings weakness or be expanded to include a material restructuring of its balance sheet, there could be negative rating implications," Moody's said.