Moody’s assigns AT&T notes A3

Moody's Investors Service said it assigned A3 senior unsecured ratings to AT&T Inc.'s new note offerings, which consist of $2 billion of 4.8% global notes due 2044, €1.6 billion of 2.4% global notes due 2024 and €500 million of 3.375% global notes due 2034.

Proceeds will be used for general corporate purposes including the repayment of existing debt.

All of AT&T's long-term ratings remain on review for downgrade, including the ratings assigned and the company's existing A3 senior unsecured ratings.

On May 19, Moody's placed AT&T's A3 senior unsecured ratings on review for downgrade. The review was initiated following AT&T's announcement that it entered into a definitive agreement to purchase DirecTV in a cash and stock deal worth roughly $67 billion, including DirecTV’s net debt.

Moody's review will assess AT&T's ability to integrate DirecTV’s operations while continuing to invest in its core wireline and wireless operations and restore its credit metrics. In particular, the review will focus on AT&T's free cash flow profile and its future tax obligation and capital spending outlook.

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