Moody's lifts Verizon debt

Moody's Investors Service said it upgraded the long-term debt rating of Verizon Wireless to A2 from A3, reflecting the agency's expectation that Verizon Wireless' superior operating results will continue to strengthen its credit profile through growing cash flows relative to debt.

The long-term and short-term ratings of Verizon Communications were affirmed at A3 and Prime-2, respectively, based on Moody's expectation that the very strong operational and financial performance of Verizon Wireless will partially offset the pressures associated with rapidly expanding wireline competition, as well as the costs and risks associated with Verizon's decision to deploy fiber-to-the home to its residential customers.

Moody's said Verizon's A3 rating reflects the agency's view that its strategy of deploying fiber-to-the-premises in order to meet increased competition in providing wireline services to the residential market, while technologically robust, will require significant upfront cost.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.