Moody's may lower AT&T

Moody's Investors Service said it placed AT&T Corp.'s Baa2 long-term and Prime-2 short-term debt ratings on review for possible downgrade following AT&T's recent announcement revising its 2004 financial outlook downward.

The decision to review AT&T's ratings reflects Moody's concern that relentless competition will cause a more pronounced and protracted decline in the company's revenues and profitability than previously anticipated.

Such an extended decline would adversely affect AT&T's ability to generate cash flow in line with current levels despite reductions in operating costs and capital spending. As a result, the company may be challenged to continue reducing debt proportionate to anticipated revenue and earnings declines.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.