Fitch affirms Alltel

Fitch Ratings said it affirmed the senior unsecured and short-term debt ratings of Alltel Corp. at A and F1, respectively.

The outlook is stable.

Fitch said the rating affirmation reflects Alltel's strong focus as a leading rural telecom operator with solid margins and stable cash flows particularly from the rural wireline markets, which generated 44% of the company's EBITDA in 2003. Fitch expects Alltel to continue generating ample free cash flow in 2004, with a slight increase over the 2003 level of approximately $845 million, although the company's $750 million stock repurchase program will absorb some of its financial flexibility.

Nevertheless, Alltel maintains a healthy cash balance, a sizable marketable security position, a modest maturity schedule and a possible inflow of more than $1 billion upon the conversion of its equity units in 2005.

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