Fitch: No impact on Vodafone

Fitch Ratings said it does not see any immediate impact on Vodafone's ratings as a result of news that the Vodafone board will buy back up to £1 billion in shares. Vodafone's long-term issuer default and senior unsecured ratings are A-.

The outlook is stable.

Coming off the back of weak first quarter results, the buyback plan is less than helpful, Fitch said.

However, it is a manageable percentage of Vodafone's pre-dividend free cash flow guidance range of £5.1 billion to £5.6 billion for 2008-2009, the agency said.

The company's capital expenditures are expected to grow on the back of its expansion in India, Moody's said, and this will increase pressure on its free cash flow levels and leverage metric.

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