S&P: Verizon outlook negative

Standard & Poor's said it revised the outlook on Verizon Communications Inc. to negative from stable and affirmed the A corporate credit and A-1 short term ratings.

The outlook revision reflects the temporarily heightened leverage that will result from Verizon Wireless' agreement to acquire Alltel Corp., to about low-2 times from 1.9 times now.

Ratings reflect the company's wireless segment's rapid growth and strong business position and cash generation, sizable local exchange operations capable of producing substantial free cash flow and a modest financial risk profile, the agency said.

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