Fitch rates Telephone and Data Systems notes BBB

Fitch Ratings said it assigned a BBB rating to Telephone and Data Systems, Inc.'s $100 million of unsecured notes maturing in 2060.

The proceeds will be used to repay a portion or all of the outstanding debt under its $283 million 7.6% unsecured senior notes, which has par call options.

The company has an issuer default rating of BBB.

The outlook is stable.

The key longer-term rating drivers for the company are maintaining a solid financial profile, sustainable revenue growth within its wireless operations and improvement in profitability, Fitch said.

The agency said it believes the company's solid financial profile affords the company further flexibility at its current rating to offset additional operational erosion and is the primary reason for the stable outlook.

Data revenue growth remains a key offset to voice ARPU erosion and overall stability with revenue that should limit the downside risk to steeper revenue declines, Fitch said.

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