Summary
Verizon Communications Inc. (VZ) filed an 8-K on May 4, 2017, to update investors on a change in its credit rating expectations. Previously, in its Q1 2017 earnings release, Verizon had indicated a return to its pre-Vodafone credit rating profile by 2018-2019. However, due to a recent shift in how rating agencies assess the industry, Verizon now states it no longer expects to achieve this upgrade within that timeframe. Despite this adjusted outlook, Verizon emphasized its continued commitment to maintaining a strong balance sheet with improving credit metrics. The company also reiterated its dedication to ongoing business investments and returning value to shareholders. Investors should note this change in credit rating expectations as it could have implications for future financing costs and the company's overall financial leverage profile.
Key Highlights
- 1Verizon no longer expects to achieve its pre-Vodafone credit rating profile by the 2018-2019 timeframe.
- 2This revised expectation is due to a recent change in rating agencies' assessment methodology for the telecommunications industry.
- 3Verizon remains committed to a strong balance sheet and improving credit metrics.
- 4The company will continue to invest in its businesses.
- 5Verizon reaffirmed its commitment to returning value to shareholders.
- 6The filing includes standard forward-looking statements and risk factors that could impact future results.