Moody's Investors Service cut its ratings for Lucent Technologies Inc. two notches Friday, saying the telecommunications equipment provider will suffer a longer and deeper downturn in demand for its products than Moody's expected, delaying its return to profitability. Its rating outlook is negative. Downgrades ordinarily raise borrowing costs, and Moody's actions affect about $7.8 billion of debt. ... Lucent is unlikely to achieve positive cash flow from operations "in the near future." ... while Lucent now complies with financial covenants in its bank agreements, weaker operating performance "will likely put pressure on the prospective compliance."

Moody's cuts Lucent ratings