Fitch rates Verizon notes A

Fitch Ratings said it assigned an A rating to Verizon Communications, Inc.'s proposed offering of $500 million of senior unsecured floating-rate notes under Rule 144A.

The proceeds will be used to reduce commercial paper.

The outlook is stable.

Fitch said Verizon's ratings are supported by strong free cash flows, which, in turn, provide the company flexibility with respect to operating within its target leverage range of 1.3 times-1.4 times. This leverage range is conservative relative to Fitch's expectations of around 1.5 times for the category.

In addition, among other factors incorporated in the rating, Verizon has significant scale and scope in its domestic wireline and wireless businesses and a high proportion of revenues from wireless and wireline growth areas, the agency said.

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