S&P rates Verizon notes BBB+

Standard & Poor’s said it assigned a BBB+ rating to a proposed series of senior unsecured notes to be issued by Verizon Communications Inc.

Verizon plans to issue up to $12.5 billion in new notes in exchange for existing debt, S&P said.

The existing debt, which is subject to the exchange totals, is roughly$30.6 billion, consisting of seven separate issues with maturities ranging from 2023 through 2043, the agency said.

The proposed notes will be issued in three tranches consisting of up to $3 billion of senior notes due 2036, which would be exchanged for the existing 5.15% senior notes due 2023; up to $4.5 billion of senior notes due 2048, which would be exchanged for existing debt due between 2028 and 2038; and up to $5 billion of senior notes due 2055, which would be exchanged for the existing 6.55% senior notes due 2043.

As a result of the proposed exchange, S&P said it expects Verizon to modestly reduce cash interest expense and extend certain debt maturities.

The company’s BBB+ corporate credit rating and stable outlook are unchanged, the agency said.

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