Fitch rates AT&T notes A

Fitch Ratings said it assigned an A rating to AT&T Inc.'s offering of €1 billion 1.875% senior unsecured notes due 2020.

The proceeds will be used for general corporate purposes.

The outlook is negative.

The A rating is supported by AT&T's financial flexibility, the company's diversified revenue mix, its significant size and economies of scale as the largest telecommunications operator in the United States 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 move up to its recently disclosed 1.8x upper boundary for leverage, which represents a notable increase from the 1.47x at the end of the third quarter of 2012, the agency said.

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