The story is here:

http://www.computerweekly.com/Articl...-all-cisco.htm

Muniz has developed rootkit software that targets IOS, the operating system used by all Cisco routers to power enterprise networks and the web.
However, it is not all bad news:

His code can not be used to break into a router, however. Any attacker could only install it if they gained access privileges or came up with their own separate attack code.