Fitch rates AT&T notes A

Fitch Ratings said it assigned an A rating to AT&T Inc.'s proposed offering of £1.25 billion senior 4.875% notes maturing in June 2044.

The outlook is stable.

Proceeds will be used for general corporate purposes.

The A rating is supported by AT&T's financial flexibility, which will enable the company to maintain leverage in the 1.5x to 1.7x range, which is appropriate for the current rating category, according to the agency.

The ratings also consider the company's diversified revenue mix, its significant size and economies of scale as the largest telecommunications operator in the United States, and expectation that AT&T will benefit from continued growth in wireless operating cash flows, the agency said. For 2011, AT&T's gross leverage was 1.56x and 1.49x on a net debt basis, with both ratios adjusted to exclude the T-Mobile USA termination payment, a write-down in the directory business and the actuarial losses on its benefit plans.

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