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NEW YORK, Aug 18 (Reuters) - Standard & Poor's cut Leucadia National Corp.'s (NYSE:LUK - News) debt ratings to junk status on Wednesday, citing the investment company's increased appetite for high-risk telecommunications assets.
Leucadia on Tuesday said it had bought a 4.96 percent stake in MCI Inc. (NasdaqNM:MCIP - News), the U.S. long distance company that emerged from bankruptcy in April. Leucadia said last month that it had sought government approval to buy up to 50 percent of MCI. The investment company already has a significant stake in WilTel Communications group, S&P said.
S&P cut Leucadia's long-term counterparty credit rating to "BB," the second highest junk rating, from "BBB-minus," the lowest investment grade rating. Counterparty credit ratings apply to transactions like derivatives trades
Source: Reuters
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