S&P rates Verizon Wireless notes A

Standard & Poor's said it assigned an A rating to Cellco Partnership's (a/k/a Verizon Wireless) proposed $4.25 billion of privately placed notes consisting of $3.5 billion of notes due 2014 and $750 million of notes due 2012.

The agency also affirmed the A corporate credit and A-1 short-term credit ratings on Cellco and its 55% owner, Verizon Communications Inc.

The outlook is negative.

Proceeds from the notes will be used for general corporate purposes, including the repayment of a portion of the $12.35 billion in bank bridge loans used to fund Cellco's acquisition of Alltel Corp. in early 2009.

The agency said the ratings on Cellco are based on those of its majority owner and operator parent, Verizon, and reflect the rapid growth of Verizon's wireless segment and strong business position and cash generation, along with its sizable local exchange operations capable of producing substantial free cash flow and a modest financial risk profile.

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