Telco's Staggering Debts To Fall On Banks

Worldcom and Qwest's downgrade of their credit rating's has left these Telco's with only their bank lines of credit. Both Telco's are borrowing from Bank of America, whose at risk of loss with no analysts cautioning investors in wake of Wall Street's witch hunt of analyst's predictions being in question.

Worldcom, Qwest and many of the other regional telecommunications companies have come under heavy pressure recently from both regulators and credit agencies as their share prices have declined, along with their ratings.

Meanwhile, analysts have been avoiding the issue with few, if any, willing to comment. Small wonder analysts remain quiet with all the scrutiny they're getting from federal regulators themselves.

One analyst has stepped forward and boldly predicted that Bank of America is at great risk of losses over their unusually high amount of loans carried on their books from both Worldcom and Qwest. "Everyone's running scared on Wall Street and unwilling to point out the risks facing Bank of America as their once golden accounts begin to tarnish and turn green", said Ms. Freddie Mooche, senior analyst with Axiom Capital Corporation in Phoenix Arizona.

Ms. Mooche had predicted Worldcom's credit rating would be reduced several days prior to Standard & Poor's downgrade. Leaving Worldcom with only its bank lines to survive on, as long as Bank of America agreed to continue extending credit.

Ms. Mooche noted that Qwest too was in the same position as Worldcom, having had its rating reduced as well, putting it in the same peril as Worldcom. "If it weren't for the witch hunt on Wall Street, many analysts would have already sounded the alarm on Bank of America and cautioned investors to consider their shares a downgrade," said Freddie.

This wasn't the first time Ms. Mooche has spoken up on a controversial subject. Known as a maverick, She had predicted in December that Compaq and Hewlett Packard would go through with their merger, despite the staunch resistance that deal had from Mr. Packard and others.

"Why avoid the obvious. It didn't take a genius to know those companies (Compaq/HP) did their homework before entering into a merger agreement. The same holds true for these Telco's with their huge appetites for spending on a race no one was going to win as they attempted to enter each other's markets. Excessive debt and not enough customers to support it was obvious to anyone with common sense. Now only the banks are left to suffer the shock waves as these companies begin to consider bankruptcy and its about time someone stood up and pointed this out to investors," said Ms. Mooche.

About Axiom Capital Corporation:
Founded in 1992, Axiom specializes in merger and acquisition transactions primarily with public companies. Axiom operates through five branch offices, concentrated in the western region of the United States. Axiom is the only corporate development organization in the United States recognized by Standard & Poor's since 1993 and is considered the leading firm in its field in transactions under $20,000,000 per tranche.

For further information contact:
Eric Stevenson
Axiom Capital Corporation
Phoenix Arizona
Ph: 602-277-9065