Qwest shares fell by nearly 12% Friday on news that the it cut 2,000 more jobs (on top of 7,000 already planned) and lowered its forecast for 2002. CEO Joe Nacchio: "We believe this guidance is realistic, assuming no further deterioration in the regional economy or industry outlook." ... Qwest, with debts near $25B, is trying to sell some of its assets - including its directory business and wireless unit - to raise pay-down cash. Qwest would not comment on a WSJ report that it was in "advanced" negotiations to unload its Dex directory publishing business for up to $10B.

On Friday, Fitch Ratings lowered its assessment of Qwest's creditworthiness to a notch above junk status ... Fitch maintains its negative outlook, based on Qwest's reduced liquidity position, weaker operating performance, outstanding debt and uncertainty over an SEC inquiry.

Meanwhile, SBC fell 3.5%, BellSouth fell 4.1%, and WorldCom fell 6% on weak outlooks.

Qwest's 1Q report is due on April 30. Look for another major drop in two weeks ... and it appears they're going to sidestep the SEC inquiry into the phone book printing schedule by selling off the business altogether. Who needs a phone book any more any way? How is that worth $10B?