Lumen Technologies announced on February 23 2026 that it has received upgraded credit ratings from Fitch, Moody’s and S&P. Fitch raised its rating to “B”, Moody’s to “B2”, and S&P to “B”, reflecting the company’s improved balance‑sheet profile and reduced risk profile.
The upgrades follow a $5.75 billion sale of Lumen’s Mass Markets fiber business to AT&T, which eliminated $4.8 billion of debt and lowered the company’s leverage ratio to a high‑4× debt‑to‑EBITDA level from 5.9× at the end of Q3 2025. The transaction also strengthened liquidity, giving Lumen a more robust cash position and a longer maturity runway with no major debt maturities in the near term.
In addition to the debt reduction, Lumen secured nearly $13 billion in new Private Connectivity Fabric (PCF) contracts with hyperscalers, creating a stable, high‑margin revenue stream that supports its AI‑infrastructure strategy. The PCF deals, combined with the sale of legacy assets, have positioned Lumen as a trusted network provider for AI workloads, a shift that is reflected in the upgraded ratings.
The rating upgrades are expected to lower Lumen’s cost of capital, enabling cheaper financing for future network modernization and AI‑infrastructure investments. The upgrades also validate the company’s disciplined cost‑management program and its focus on high‑margin enterprise services, which saw a 52% revenue increase in the NA Enterprise segment during Q4 2025. Together, these developments signal a stronger financial footing and a clearer path to sustainable growth.
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