Fitch rates Verizon notes A

Fitch Ratings said it assigned an A rating to Verizon Communications, Inc.'s proposed offering of senior notes.

The outlook is stable.

Proceeds will be used to repay all or a portion of $3.45 billion of Verizon and operating subsidiary debt due in 2012 and 2013 and, depending on the size of the offering, to repay up to about $1.8 billion of commercial paper.

Ratings reflect the significant scale and scope of the company's domestic wireline and wireless businesses, the high proportion of revenues from wireless and wireline growth areas, and the ability to manage leverage around a range of 1.5 times to 1.6x, the agency said.

Gross leverage was 1.55 times for the 12 months ended Sept. 30, and net leverage was 1.26x.

Concerns include the competitive pressures in the residential wireline market from wireless substitution and cable telephony competition, and the effect of the slow economic recovery on revenues from business and residential customers, the agency noted.

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