Fitch downgrades Verizon Hawaii - Pacific Business News (Honolulu):

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Fitch cut the rating from A-minus to And it cut the ratinh on its first mortgage bondsz from Ato BBB-minus. In additionb to the junk bond ratings, Fitch put Verizon Hawaiui on RatingWatch Negative. The rating action affectzs $425 million of publicly outstandinb debt. Verizon Communications announcerd an agreement to sell its legact wireline businesses in Hawaii to The Carlyle Groulpfor $1.65 billion. Operations providing services to federal customers in Hawaii will notbe sold. As the year begann Verizon Hawaiicarried $650 million in debt. Fitcb said the downgrade reflects its assumptiob that leverage will increaser after thetransaction closes.
"The Ratingv Watch Negative designation indicates a further downwardr rating actioncould occur, depending on the ultimate capitap structure of Verizon Hawaii, and the position of the debenture s and first mortgage bonds within the new capitap structure," Fitch said Tuesday.