Moody's shifts Verizon view to stable

Moody's Investors Service said it changed Verizon Communications Inc.'s outlook to stable from positive and affirmed the company's Baa1 issuer and senior unsecured ratings, Moody's also affirmed the Baa2 unsecured rating of Verizon subsidiary GTE LLC and changed its outlook to stable.

“The outlook change to stable from positive reflects Moody's view that debt-funded spectrum investments significantly lengthen Verizon's deleveraging beyond the period consistent with Moody's previous positive rating outlook. The company is publicly committed to debt reduction with its goal of achieving a company-defined net unsecured leverage range target first before returning excess cash flow after dividends to shareholders. Verizon's disciplined focus on a financial policy prioritizing network and other business investments and long term balance sheet strengthening over share repurchases is an important driver of its credit profile,” the agency said in a press release.

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