A day after Broadwing Inc. reported better-than-expected second quarter results, an investment firm and a credit rating agency lowered their opinion on the parent of Cincinnati Bell.

        Fitch Ratings, the credit rating agency, lowered its opinion on the 12.5 percent exchangeable preferred stock of subsidiary Broadwing Communications from "B' to "C.'

        St. Petersburg investment firm Raymond James & Associates also downgraded Broadwing's stock from “strong buy,” expected to outperform the market, to “market perform,” average performer over the next year.

        Broadwing said Thursday that it was deferring the August dividend on the preferred. Fitch also changed its ratings outlook for all of Broadwing from “stable” to “negative.”

        “While the company has made significant progress, the company will need to access capital markets to solidify its liquidity position entering 2003,” Fitch said.

        — Mike Boyer

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