Fitch: MCI still on watch positive, Verizon on watch

Fitch Ratings said it maintained the Rating Watch Negative assigned to Verizon Global Funding's outstanding long-term debt securities, which are rated A+, and the Rating Watch Positive remains on the senior unsecured debt rating of MCI Inc., which is rated B by Fitch.

Fitch said these actions follow the announcement that Verizon Communications amended its previous agreement to acquire MCI.

Verizon has increased the total consideration from $6.75 billion to $7.6 billion. As before, the transaction includes approximately $4.8 billion in Verizon common stock, with the increase in the amount coming from cash.

Fitch said its rating action reflects the need to evaluate the moderately higher business risk profile of Verizon following its acquisition of MCI, the potential synergies to be achieved, the outcome of the regulatory approval process and the potential for other bids to arise for MCI.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.