Fitch ups Alltel from junk

Fitch Ratings said it upgraded and removed from Rating Watch positive Alltel Corp.'s issuer default rating to A from B, and $800 million 7% notes due 2012, $200 million 6.5% notes due 2013, $300 million 7% notes due 2016, $300 million 6.8% notes due 2029 and $700 million 7.875% notes due 2032 to A from CCC+/RR6.

The agency upgraded Alltel Communications Inc.'s issuer default rating to A from B, and senior secured bank credit facility due 2015, senior unsecured cash pay debt bank credit facility due 2015, senior unsecured pay-in-kind toggle debt bank credit facility due 2017 and $1 billion 10.375%/11.125% PIK toggle notes due 2017 to A from B/RR4.

Fitch said the upgrade is in anticipation of the close of the acquisition of Alltel by Cellco Partnership on Jan. 9.

The issuer default ratings of Cellco Partnership and Verizon Wireless Capital are supported by Verizon's continued strong growth of revenue, EBITDA and free cash flow as well as its strong competitive position among the four national operators, according to the agency.

Fitch said it estimates initial leverage will be about 1.7 times using combined EBITDA annualized for the first nine months of 2008.

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