NEW YORK (TheStreet) -- The German government will end its networking contract with Verizon Communications (VZ) next year, due to concerns regarding the NSA's surveillance programs, Bloomberg reports.
Germany's government is applying "especially high" security standards to its communications infrastructure in the wake of the NSA surveillance program incident.
The German government will not renew the contract with Verizon as the country's new security policies require telecommunications providers to confirm they are not bound to share information with foreign governments, Bloomberg added. In June 2013, Verizon was under a court order by the Obama administration to provide data regarding phone usages by millions of its customers.
Shares of Verizon are down -0.59% to $49.12 in afternoon trading on Thursday.
Separately, TheStreet Ratings team rates VERIZON COMMUNICATIONS INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate VERIZON COMMUNICATIONS INC (VZ) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, expanding profit margins, compelling growth in net income and impressive record of earnings per share growth. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."