Moody’s raises GTE notes

Moody’s Investors Service said it upgraded GTE LLC’s remaining $250 million of notes to Baa1 from Baa2.

GTE distributed its assets and liabilities to Verizon Communications Inc., which the agency affirmed at Baa1.

“Verizon became the successor obligor on GTE's remaining outstanding debt balance of $250 million of 6.94% notes due April 15, 2028 (GTE notes). Prior to this dissolution, the GTE notes were guaranteed by Verizon but the terms of that guarantee stipulated a five-day cure period following default by GTE, a factor which Moody's considered a weakness and resulted in a one-notch lower rating of Baa2 for the GTE notes from Verizon's Baa1 rating,” the agency said in a press release.

The outlook is stable.

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