Fitch rates Verizon notes A-

Fitch Ratings has assigned an 'A-' rating to Verizon Communications Inc.’s senior unsecured exchange notes due 2036, 2048 and 2055.

Verizon commenced an offer to exchange existing senior unsecured debt that it, or its GTE Corp. subsidiary, had previously issued for the new Verizon notes.

In the case of the GTE debentures, cash will comprise part of the total exchange price, Fitch said.

The exchange will reduce significant maturity towers in 2023 and 2043, as well as lower the average cost of debt, the agency said.

The company’s current issuer default rating is A- with a stable outlook.

The February 2014 acquisition of the remaining Verizon Wireless stake pressured Verizon’s recent credit metrics, pushing pro forma leverage at closing to about 2.6x, Fitch said.

The agency said it expects Verizon to materially reduce debt over the next few years, which supports the commitment of Verizon’s management to de-lever.

Verizon’s strong competitive position, evidenced by industry-low churn rates on average, high margins and the most developed LTE network in the United States supports the ratings.

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