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Elaine Francolino, Moody's debt analyst, pointed to a new $700 million secured bank loan the company received in November.
Mr. Shapiro, 30, is a corporate debt analyst at Standard & Poor's, the bond-rating agency in New York.
"Every notch down increases the difficulty of raising capital," said Anthony Klarman, a debt analyst at Deutsche Bank.
"The bad news is that earnings are worse than expected," said Jack Reichman, a health care debt analyst at Standard & Poor's.
"Lucent has a history of promising a lot and delivering very little," said Ed Oppedisano, a telecommunications debt analyst at Deutsche Bank.
"The irresistible force of German austerity has clashed with the immovable object of Greek popular resistance," said Tristan Cooper, sovereign debt analyst at Fidelity Worldwide Investment.
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Lucent has less short-term debt coming due than Xerox, the debt analysts pointed out.
The arrests renewed hopes that the company might finally seriously start renegotiating its debt, analysts said.
Luckily for investors, the same cannot be said for debt analysts.
Arranging the financing is particularly complex, debt analysts said yesterday, because six banks have made loans to various Adelphia entities.
Debt analysts say the recommendations are a good start, but worry about whether they will be followed.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com