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Strategies & Market Trends : Sharck Soup -- Ignore unavailable to you. Want to Upgrade?

To: American Spirit who wrote (16856)	4/18/2001 12:50:45 PM
From: Softechie	Read Replies (1) \| Respond to of 37746

Moody's just downgraded XOXO to negative. CLEC's will face more pressure in coming months. PRESS RELEASE: XO Commun Outlook To Negative: Moody's 18 Apr 10:14 Following is a press release from Moody's Investors Service: New York, April 18, 2001 -- Moody's Investors Service has confirmed the B2 senior unsecured rating of XO Communications, Inc. ("XO"). All other ratings have been confirmed, including the B1 senior implied and B2 senior unsecured issuer ratings. The rating outlook has been changed to negative from stable. The change in outlook reflects our view that XO is constrained in its ability to cover its substantial funding gap on acceptable terms from public debt or equity issues, given present market conditions. The rating confirmation recognizes the strength of management, the controlling interest of Craig McCaw, and the successful execution of the company's business plan to date. As of December 31, 2000, pro-forma for the January 2001 convertible note issue, the company recorded liquid assets and available bank credit totaling approximately $3.0 billion, which the company has indicated will fund its cash needs into the first half of 2002. Thereafter, Moody's estimates XO faces a substantial funding gap prior to the attainment of positive free cash flow. Absent additional funding, Moody's expects that the company will adopt measures to monetize existing assets and reduce the magnitude of the potential cash shortfall by scaling back its business plan. There can be no assurance that current equity sponsors, including McCaw and Forstmann Little, will provide additional funding. XO Communications Inc. is headquartered in Reston, Virginia. (END) DOW JONES NEWS 04-18-01 10:14 AM