NEW YORK (CNN/Money) - Qwest Communications Inc. may restate its 2001 financial results and erase more than $1 billion in revenue, the Wall Street Journal reported in its Interactive edition late Friday.

Citing "people familiar with the matter," the Journal report said Richard Notebaert, Qwest's newly minted chairman and CEO, was considering the restatement as part of an effort to restore the company's credibility.

Qwest (Q: Research, Estimates), a local telephone company serving 14 Midwest and Western states, has been beset by a series of accounting and legal troubles, including a criminal probe that the company announced earlier this week.

Previously, Qwest had admitted it was under investigation by the Securities and Exchange Commission, receiving a subpoena from the agency for documents concerning bankrupt telecom Global Crossing Ltd.

The CEO who built the company, Joseph Nacchio, resigned last month. And credit ratings agencies have slashed Qwest's ratings to "junk" status, making it tougher for the company to borrow money.

According to the Journal report, the company's new management hasn't yet made a final decision on the restatement, but analysts believe a restatement is likely.

In 2001, Qwest posted revenue of $19.7 billion and a loss of $4 billion, or $2.42 a share.

The restatement could add about $800 million, or 50 cents a share to that loss, the Journal report said. The restatement would primarily involve revenue from so-called "swap transactions" and would have no impact on results in the current year, the report said.

Executives of Qwest were not immediately available for comment on the Journal's report.