Merger-Related: Moody's Confirms VZW's A3
Moody's Investors Service said Wednesday it has confirmed the "A3" senior unsecured rating of telecommunications company Verizon Communications Inc., affecting about $45 billion worth of long-term debt.
An "A3" rating is investment grade. Moody's said the ratings affirmation is based on its assessment that the cash flows generated by Verizon Wireless will continue to grow at a healthy rate despite the U.S. economic downturn.
"Cash flows from Verizon's wireless business have been strong, and we expect that to continue despite the soft economy," said Dennis Saputo, Moody's senior vice president, in a statement. "The strength of the wireless business offers substantial support to the rating, and helps offset challenges in so...
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An "A3" rating is investment grade. Moody's said the ratings affirmation is based on its assessment that the cash flows generated by Verizon Wireless will continue to grow at a healthy rate despite the U.S. economic downturn.
"Cash flows from Verizon's wireless business have been strong, and we expect that to continue despite the soft economy," said Dennis Saputo, Moody's senior vice president, in a statement. "The strength of the wireless business offers substantial support to the rating, and helps offset challenges in so...
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I would say it would be significant if they were trying to buy a landline co. But they are buying a profitable wireless co along with theirs. They will have no problem.
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Alltel is not a profitable wireless. They are in $23 Billion in debt. And on top of it, Verizon is just the same. $22 billion in debt. Made not sence that vzw merge with Alltel. Alltel would do better with themself.
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Debt does not make a company not profitable. Every company except a handful operate on debt. It is sometimes to their advantage. They are both profitable. Did you not read that part of the article? Verizon is being helped right now by their wireless division.
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Yes, you are right about "Debt does not make a company not profitable.". But, When you are in the red all the time. How can you operate as a company. And many companies do this. Verizon is $12 billion in debt. I made a mistake on the first thread. So, where is the surplus or profit they are making. This is not good.
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Im sorry, update on the verizon wireless debt. vzw share of the total debt is $41 billion. Here is the link.
http://money.cnn.com/2008/06/05/technology/verizonde ... »
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http://money.cnn.com/2008/06/05/technology/verizonde ... »
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oh yeah verizon is heavy in debt because of FIOS. But I think it is a great payoff. While they spending it now and upgrading one time they will be in great position in the future. ATT and Quest and a few others are spending less but still a good bit on FTTN and will be forced to upgrade again to what verizon is doing now later. Verizon will be able to offer basically unlimited tv internet and phone with fiber to home. Were ATT is struggling to offer 18mbs today. Verizon is offering 50/50 now and heard 100mbs is coming too.
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its so hard to explain about debt and profitability. Its so complicated. But Verizon revenue is up. From what I gather as long as they are making more money then they have to pay out to debt they are. So if that debt cost them say 500,000 a month as long as they pay that and everything else and still have money left over they are profitable.
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The first time a wireless carrier was ever sold for a profit was when TPG and Goldman, who is an investment firm, bought them in 2007. Their shares were almost $70 per share. They were debt free at the time and used to advertise it. Just like they do MyCirle..ect.They became debt free after selling off Al tare landline services. They were the only wireless carrier to be debt free in the last 10 years. Other than USCC, since they refuse to go into debt to grow.
They were bought for 26 billion. They produced over 12 billion in revenue, in 2007. The investment firm financed the whole thing, all 26 billion of it. So once they were sold in 2007, they went into debt. Considering that less than a year later they are only 22 billion i...
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The first time a wireless carrier was ever sold for a profit was when TPG and Goldman, who is an investment firm, bought them in 2007. Their shares were almost $70 per share. They were debt free at the time and used to advertise it. Just like they do MyCirle..ect.They became debt free after selling off Al tare landline services. They were the only wireless carrier to be debt free in the last 10 years. Other than USCC, since they refuse to go into debt to grow.
They were bought for 26 billion. They produced over 12 billion in revenue, in 2007. The investment firm financed the whole thing, all 26 billion of it. So once they were sold in 2007, they went into debt. Considering that less than a year later they are only 22 billion i...
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