S&P assigns Cellco notes A

Standard & Poor's said it assigned its A rating to Cellco Partnership's proposed aggregate $3 billion in notes of five- and 10-year maturities to be issued under Rule 144A with registration rights, to be co-issued with financial conduit Verizon Wireless Capital LLC.

At the same time, the agency said it affirmed the A corporate credit rating on Cellco and its 55% owner Verizon Communications Inc.

The other 45% of Cellco is owned by Vodafone Group plc (A-/stable/A-2), the agency said, adding that proceeds from the notes will be used to pay a portion of the purchase price for the company's pending purchase of Alltel Corp. (B+/watch positive), including the refinancing of certain Alltel debt.

The outlook is negative.

According to S&P, the ratings on Cellco are based on those of its majority owner and operator parent Verizon Communications and reflect the rapid growth of Verizon's wireless segment and strong business position and cash generation, sizable local exchange operations capable of producing substantial free cash flow, and a modest financial risk profile.

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