Fitch rates AT&T notes A

Fitch Ratings said it assigned an A rating to AT&T Inc.'s offering of $1.6 billion of 2 3/8% senior unsecured notes due 2018 and $400 million of floating-rate notes due 2018.

The proceeds are expected to be used for general corporate purposes, including the funding of the cash consideration for a tender offer of certain debt issues.

AT&T's issuer default rating is A. The outlook is negative.

The ratings are supported by its diversified revenue mix, significant size and economies of scale as the largest telecommunications operator in the United States, strong free cash flows and an expectation that AT&T will benefit from continued growth in wireless operating cash flows, Fitch said.

The negative outlook reflects an expectation that AT&T's net leverage is likely to be about 1.8x before declining after 2014, the agency said.

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