S&P cuts AT&T

Standard & Poor's said it lowered the ratings on AT&T Inc. and related entities, along with its long-term corporate credit rating to A- from A and short-term rating to A-2 from A-1.

The ratings were removed from CreditWatch, where they were placed with negative implications in July.

The outlook is stable.

The downgrades reflect a view that the magnitude of AT&T's debt reduction will be limited and that the company will pursue a financial policy that results in rating metrics that are not fully supportive of the previous 'A' corporate credit rating, S&P said.

The agency said it does not expect AT&T's leverage to improve beyond the low-2x area.

S&P said it continues to view the company's overall business risk profile as strong, underpinned by its well-performing wireless segment.

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