Fitch cuts Verizon, may up Alltel

Fitch Ratings said it downgraded Verizon Communications Inc.'s long-term issuer default rating, senior unsecured debt and $5.6 billion bank facility to A from A+ to reflect the acquisition of Alltel Corp. by Cellco Partnership, doing business as Verizon Wireless. Ratings were removed from Rating Watch negative.

The outlook is stable.

Alltel Corp.'s B issuer default rating will remain on Rating Watch positive. After the close of the deal, Fitch said it will upgrade Alltel's rating to A.

Verizon's A issuer default rating reflect strong growth at Verizon Wireless, the agency said.

Concerns include continued competition for voice services in the consumer wireline market and consumer voice revenue losses in the retail residential market, the agency noted.

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