Fitch rates AT&T loans A

Fitch Ratings said it affirmed the A issuer default ratings of AT&T Inc. and its subsidiaries and assigned an A rating to AT&T's $5 billion 364-day revolving credit facility.

The outlook is stable. The ratings were removed from Rating Watch negative, which was placed after the company's plans to acquire T-Mobile USA, Inc.'s assets from Deutsche Telekom AG in a $39 billion cash and stock transaction.

The companies mutually agreed to terminate the deal after actions by the Federal Communications Commission and the Department of Justice to block the merger, according to the agency.

The A rating is supported by AT&T's financial flexibility, which will enable it to maintain leverage in a 1.5 times to 1.7x range, Fitch said.

For the 12 months ended Sept. 30, AT&T's gross leverage was 1.8x and was 1.5x on a net debt basis. Fitch said it expects year-end 2012 gross leverage to be about 1.5x, which takes into account the payment of the breakup fee and the acquisition of the wireless spectrum from Qualcomm.

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