Global Crossing’s Credit Rating Drops

Global Crossing Ltd.’s credit rating was lowered two notches by Standard & Poor’s and may be reduced further after the undersea phone-and-data network operator said it will violate loan covenants. The company’s credit rating was dropped to B-minus, six notches into junk status.

On Wednesday, Beverly Hills-based Global Crossing said in a regulatory filing that it awarded options to purchase 5 million common shares at $1.35 each to John Legere, positioning the newly appointed chief executive to reap huge gains if he can turn around the company. Legere can immediately exercise one-third of the options. Global Crossing shares closed at $1.14, down 6 cents on the NYSE.