Moody's confirms Verizon

Moody's Investors Service said it confirmed the A3 senior unsecured rating of Verizon Communications based on the agency's assessment that the cash flows generated by Verizon Wireless will continue to grow at a healthy clip despite the U.S. economic downturn.

The outlook is negative.

"Cash flows from Verizon's wireless business have been strong, and we expect that to continue despite the soft economy," Dennis Saputo, Moody's senior vice president, said in a written statement. "The strength of the wireless business offers substantial support to the rating, and helps offset challenges in some of the wireline subsidiaries."

Challenges include slowing subscriber growth and a weakening economy that may preclude the company from reducing debt levels as quickly as expected, the agency noted.

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