S&P lowers Verizon, raises MCI

Standard & Poor's said it lowered its ratings on Verizon Communications Inc. and subsidiaries, including Cellco Partnership.

The agency said the corporate credit rating was lowered to A from A+ and ratings on debt of Verizon's local operating companies were also lowered to A from A+.

All ratings are removed from CreditWatch, where they were placed with negative implications on Feb. 14,

2005, following Verizon's announcement of its plan to acquire MCI Inc.

The outlook is negative.

In addition, the agency said the ratings on MCI Inc. were raised and removed from CreditWatch, where they were placed with positive implications Feb. 14, 2005, based on the acquisition of the company by the more creditworthy Verizon. The corporate credit rating on MCI was raised to A from B+.

S&P said the downgrade of the Verizon ratings is based on deteriorating business risk in the local exchange segment from stagnant revenue caused by access line erosion.

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