S&P affirms investment-grade ratings on Verizon

Standard & Poor's Ratings Services on Thursday affirmed its investment-grade ratings on Verizon Communications Inc., and assigned an "A" rating to the telecommunications company's proposed offering of about $3 billion of notes.

S&P affirmed Verizon's "A" corporate credit rating and said the outlook on the ratings remains negative.

"The ratings on Verizon reflect its wireless segment's rapid growth and strong business position and cash generation," said credit analyst Catherine Cosentino in a note, adding that the pending acquisition of Alltel Corp. further expands the company's scale and scope.

Verizon Wireless said in June that it would buy Alltel, a wireless provider based in Little Rock, Ark., for $5.9 billion plus the assumption of $22.2 billion in debt. Verizon Wireless is a joint venture of New York-based Verizon Communications and Britain's Vodafone Group PLC.

Earlier Thursday, Fitch Ratings said it was keeping a negative watch on the company's issuer default rating.

Verizon shares slipped 3 cents to $30.47 in afternoon trading.

Back To Top

Verizon told to sell assets with Alltel merger

Associated Press

Thu Oct 30

1