S&P: Verizon on watch

Standard & Poor's said it placed all its ratings on Verizon Communications Inc. and related issuers on Creditwatch with negative implications, including its A long-term and A-1 short-term corporate credit ratings.

The agency said it expects a potential downgrade, if any, would be limited to one notch, and a downgrade would most likely result in its lowering the commercial paper rating to A-2 from A-1.

"The Creditwatch placement reflects," said S&P credit analyst Catherine Cosentino, "our view that Verizon has limited ability to reduce debt and grow EBITDA sufficiently in the remainder of 2010 to reach a low-2x leverage, with a clear path to further reduce leverage to no greater than 2x beyond 2010."

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