Fitch rates Verizon Wireless notes A

Fitch Ratings said it assigned an A rating to the €500 million 8.75% notes due 2015, €650 million 7.625% notes due 2011 and £600 million 8.875% notes due 2018 co-issued by Cellco Partnership aka Verizon Wireless and Verizon Wireless Capital LLC in a private placement.

The outlook is stable.

Proceeds of about $2.4 billion will be used to pay for a portion of the total cost of the pending acquisition of Alltel Corp.

The agency said the companies' A issuer default ratings are supported by Verizon Wireless' continued strong growth of revenue, EBITDA and free cash flow as well as its strong competitive position among the four national operators.

Net subscriber additions are slowing for Verizon Wireless and the industry, and there is pressure on voice service revenue per customer, but Fitch expects Verizon Wireless' subscriber growth and high wireless data service revenue growth to contribute to total revenue growth that is above the industry average in the near term.

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