Fitch rates Verizon notes A-

Fitch Ratings said it assigned an A- rating to Verizon Communications Inc.'s $2.059 billion of senior unsecured 4.2% notes due 2046.

Proceeds will be used to repay the $870 million principal balance of the 4.8% notes due 2044, as well as for general corporate purposes.

The company's long-term issuer default rating is A- and the outlook is stable.

Fitch said the ratings are supported by Verizon Wireless' strong competitive position, as evidenced through industry-low churn rates, high margins and the extensive coverage of about 98% of the U.S. population with its 4G LTE network.

These factors are balanced against moderately high leverage for the rating, which stems from the February 2014 acquisition of the remaining 45% stake in Verizon Wireless, the agency added.

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