Fitch rates Verizon notes A-

Fitch Ratings said it assigned an A- rating to Verizon Communications Inc.’s proposed senior unsecured exchange notes due 2020, 2046 and 2054.

The company commenced an offer to exchange up to $12 billion of existing senior unsecured notes that it, or its subsidiaries, previously issued for the new Verizon notes.

The company’s issuer default rating is A- and the outlook is stable.

The agency said the February 2014 acquisition of the remaining Verizon Wireless stake pressures the company’s near-term credit metrics, pushing pro forma leverage at closing to about 2.6x.

While leverage will be outside an appropriate range for an A- rating for several years, Fitch said it believes metrics will return to a level appropriate for the rating due to Verizon’s strong position in the wireless industry and the significant cash flows generated by the wireless business.

Its strong competitive position is evidenced by the company’s industry-low churn rates, high margins and the most developed LTE network in the United States, the agency said.

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