Fitch assigns Verizon notes A-

Fitch Ratings said it assigned an A- rating to Verizon Communications Inc.'s proposed multi-tranche senior unsecured note offering.

Verizon's issuer default rating is A- and the outlook is stable.

Proceeds from the offering will be used to partly fund the cash portion of Verizon's proposed $130 billion acquisition of Vodafone Group, plc's 45% interest in Cellco Partnership (which does business as Verizon Wireless).

The transaction is expected to close in the first quarter 2014 after shareholder and customary regulatory approvals.

Fitch said the acquisition pressures Verizon's near-term credit metrics, pushing pro forma leverage at closing to about 2.8x.

Subsequent to the close of the acquisition, Fitch said it expects Verizon to reduce debt. EBITDA growth, combined with debt reductions are expected to reduce leverage to about 2x by the end of 2016, which the agency believes is appropriate for an A- rating.

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