Fitch rates Verizon notes A-

Fitch Ratings said it assigned an A- rating to Verizon Communications Inc.'s multi-tranche offering of euro- and sterling-denominated senior unsecured notes.

The proceeds will be used for general corporate purposes, including the acquisitions of Fleetmatics Group plc and XO Holdings's wireline assets, Fitch said, as well as for the potential repayment of debt, depending on market conditions.

The company has a long-term issuer default rating of A- and the outlook is stable.

The ratings are supported by Verizon Wireless's strong competitive position as evidenced through industry-low churn rates, high margins and extensive coverage of about 98% of the U.S. population with its 4G LTE network, Fitch said.

These factors are balanced against moderately high leverage for the rating, which stems from the February 2014 acquisition of the remaining 45% stake in Verizon Wireless, the agency said.

Fitch said it assumes Verizon's EBITDA grows at lower than 1% in 2016 over 2015.

The agency also said it expects mid-single digit EBITDA growth in 2017 based on organic revenue growth slightly below expectations for domestic GDP growth, plus the effect of acquisitions.

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