Jefferies downgraded Level 3 Communications (NYSE: LVLT) from Buy to Hold with a price target of $55.00 (from $58.00) after the company agreed to be acquired.

"While the deal spread of near 15% (excl. CTL dividend) is sizable, we do not anticipate any alternate bidder and remain concerned about CTL's fundamentals, which could reduce the stock portion of the deal," analyst Scott Goldman said.

For an analyst ratings summary and ratings history on Level 3 Communications click here. For more ratings news on Level 3 Communications click here.

Shares of Level 3 Communications closed at $56.15 yesterday.