U.S.-based telecommunications provider Frontier Communications Holdings LLC has entered into an agreement to be acquired by Verizon Communications Inc. for approximately $20 billion cash. We placed all our ratings on Frontier, including the 'B-' issuer credit rating, on CreditWatch with positive implications. We expect to resolve the CreditWatch when the transaction closes, most likely in the first quarter of 2026. The CreditWatch placement follows the announcement that Verizon will acquire Frontier for about $20 billion in an all-cash transaction. We view the transaction favorably for Frontier given the expected meaningful improvement in credit quality since Verizon (BBB+/Stable/A-2) is rated higher, with stronger credit metrics and greater size and scale. In addition, the acquisition will provide Frontier's customers with more choice
