S&P affirms Vodafone, removes CreditWatch

Standard & Poor's said it affirmed the A- long-term and A-2 short-term corporate credit ratings on Vodafone Group plc.

The agency also said it removed the A- long-term rating from CreditWatch, where it was placed with negative implications in June.

The action follows news that Vodafone will sell its 45% interest in Verizon Wireless for $130 billion, S&P said.

The agency said it thinks the transaction's cash proceeds, net of announced shareholder returns and taxes, should enable the group to trim its financial debt by about £14 billion.

This reduction could translate into substantially stronger credit ratios compared with previous expectations, S&P said.

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