DBRS Rates Levels 3 Financing’s $500 million New Issue at B (low)

DBRS has today assigned a rating of B (low) with a Stable trend to Level 3 Financing Inc.’s planned $500 million notes issue. Level 3 Financing Inc. is a financing subsidiary of Level 3 Communications Inc. (Level 3 or the Company). The Company expects the new issue to be completed during the week of February 12, 2007, and consist of two tranches including one floating-rate tranche that will mature in 2015 and a second fixed-rate tranche that will mature in 2017.

DBRS notes that the Company has indicated that proceeds from this issue will be used to finance the cost of construction, installation, acquisition, lease, development or improvement of the Company’s communications assets. Additionally, following the completion of the above issue, Level 3 intends to call for redemption of its $488 million outstanding 12.875% senior discount notes due 2010 using cash on hand.

DBRS believes that these transactions will further enhance the debt maturity profile of Level 3 and reduce its interest expense.

DBRS notes that it upgraded the ratings of Level 3 Financing Inc. and Level Communications Inc. on October 31, 2006.

Note:
All figures are in U.S. dollars unless otherwise noted.
This rating is based on public information.