Level 3 Communications (LVLT: sentiment, chart, options) was also hit by Standard & Poor's on Monday. The ratings group cut its corporate credit rating on LVLT to "SD," or selective default, from "CC." S&P also lowered ratings on the firm's 6% convertible subordinated notes due 2010, and 2.875% convertible senior notes due 2010 to "D" from "C." Furthermore, S&P said it may downgrade the "C" rating on the company's 6% convertible subordinated notes due 2009.

"These rating actions follow the completion of below-par debt tender offers for 2 of the 3 issues, and Standard & Poor's viewed these offers as distressed and, as such, tantamount to default," said Susan Madison, an S&P credit analyst, in a statement.

Technically speaking, the shares of LVLT are hovering at the 65-cent level, with potential support at the 60-cent level resting just below the security current trading price. The stock has had a rough 2008, as it has lost more than 78% of its value.

Sentiment is definitely bearish toward the shares of LVLT. The stock has earned 2 "buys," 4 "holds," and 7 "sells," according to Zacks. This downgrade from S&P could cause another round of brokerage downgrades for the shares.