Fitch gives A- to Verizon notes

Fitch Ratings said it assigned an A- rating to Verizon Communications Inc.'s senior unsecured notes.

Proceeds will be used to repurchase notes tendered in tender offers that began on March 13 and for general corporate purposes, including the funding, all or in part, of the pending acquisition of Yahoo! Inc.'s operating businesses and the funding of discretionary contributions to Verizon's qualified pension plans.

Verizon'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 approximately 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, as well as the intensely competitive wireless environment.

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