Moody’s rates Verizon notes Baa1

Moody's Investors Service said it assigned Baa1 ratings to Verizon Communications Inc.'s newly issued five-year senior unsecured euro notes due 2022, eight-year senior unsecured euro notes due 2025, 12-year senior unsecured euro notes due 2025, and 19-year senior unsecured Sterling notes.

Verizon intends to use the net proceeds for general corporate purposes, which may include, among other things, the financing of the pending acquisitions of Fleetmatics Group plc and XO Holdings' wireline business and, depending on market and other conditions, the repayment of outstanding debt.

Moody’s said the Baa1 long-term debt rating reflects the company’s significant scale of operations, the diversity of its revenue mix and strong market position across its business segments, particularly wireless.

The rating also reflects Verizon's modest free cash flow, which is constrained by high capital intensity and a large common stock dividend, the agency added.

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