S&P rates Verizon notes A

Standard & Poor's said it assigned its A rating to Verizon Communications Inc.'s issue of $2 billion of senior unsecured debt, including $500 million of floating-rate notes due 2009, $750 million of 5.5% notes due 2017 and $750 million of 6.25% notes due 2037.

Proceeds will be used for general corporate purposes, including repayment of commercial paper and other upcoming maturities, the agency said, adding that these new issues do not meaningfully change Verizon's credit profile.

Accordingly, S&P said it affirmed the A corporate credit rating on Verizon with a negative outlook.

The agency said that the ratings on Verizon reflect its fast-growing wireless segment's strong business position and cash generation, sizable local exchange operations capable of producing substantial free cash flow, a good position serving enterprise customers gained from the early 2006 acquisition of MCI Inc. and a modest financial risk profile.

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