Fitch: Verizon unaffected

Fitch Ratings said it anticipates that Verizon Communications, Inc.'s (A+/stable) proposed spinoff of some local assets in Maine, New Hampshire and Vermont into a separate and new subsidiary, and the entity's subsequent merger with Fairpoint Communications, Inc., will not have a material effect on the credit ratings of Verizon or Verizon New England. Given the potential debt reduction, combined with the loss of EBITDA and free cash flow in the transaction, the effect on Verizon's credit metrics is expected to be neutral, the agency said.

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