S&P: AT&T unchanged

Standard & Poor's said that the ratings and outlook on AT&T Inc. (A/stable/A-1) are not affected by the company's announced agreement to acquire Centennial Communications Corp. (B/watch positive).

AT&T will pay about $944 million for Centennial's common stock, plus assume the company's nearly $1.4 billion in unsecured debt, the agency said.

In addition, under terms of its secured bank facility, Centennial's $550 million of term debt is required to be repaid under change of control provisions, S&P noted.

The transaction is expected to close in the second quarter of 2009, the agency added, stating that it expects AT&T's leverage to remain in the low-2x area in 2009, even with this transaction.

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