Fitch assigns A- to AT&T notes

Fitch Ratings said it assigned an A- rating to AT&T Inc.'s senior unsecured note offering.

The company's long-term issuer default rating is A-. The issuer default rating and debt securities remain on Rating Watch Negative, where they were placed in October upon the announcement of the acquisition of Time Warner Inc.

Time Warner has a long-term issuer default rating of BBB+.

Proceeds from the offering are expected to be used for general corporate purposes, including the repayment of maturing long-term debt.

Fitch said it believes AT&T's acquisition of Time Warner provides AT&T with a strong foothold in the evolving communications and media landscape. The acquisition, combined with AT&T's 2015 acquisition of DirecTV, offers the potential to capitalize on emerging trends for mobile video and over-the-top (OTT) video delivery.

Other benefits include the diversification of AT&T's revenue stream, and additional financial flexibility owing to Time Warner's strong free cash flow, the agency added.

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