New York, February 05, 2015 -- Moody's Investors Service ("Moody's") has affirmed Frontier Communications Corporation's ("Frontier" or the company") Ba3 Corporate Family Rating ("CFR") and Ba3-PD Probability of Default Rating ("PDR") following the company's announcement that it has agreed to acquire Verizon Communications, Inc's ("Verizon") local wireline assets in the states of Florida, Texas and California. Frontier will pay approximately $10.5 billion for the former GTE wireline operations. Moody's expects Frontier's free cash flow profile to meaningfully improve following this transaction. Moody's exects that leverage will rise temporarily, but fall back towards 4x (Moody's adjusted) over a two year period following deal close. As part of this rating action, Moody's has also affirmed Frontier's SGL-1 speculative grade liquidity rating and the Ba3 ratings on the existing senior unsecured notes. The outlook remains stable.

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