S&P: AT&T unchanged

Standard & Poor's said the ratings and outlook on AT&T Inc. will currently remain unchanged, despite the U.S. Department of Justice's filing of a civil antitrust lawsuit to block AT&T's proposed $39 billion acquisition of T-Mobile USA, a unit of Deutsche Telekom AG.

Justice officials said the combination of two of the four largest U.S. wireless carriers would result in higher prices, fewer choices and lower quality products for mobile wireless services, S&P said.

While the announcement casts some doubt on the deal's likelihood of completion, the agency said it believes there are still many potential outcomes.

AT&T said it plans to challenge the lawsuit, S&P said, and government officials said they are open to possible remedies, which presumably would include significant divestitures of customers or spectrum to alleviate the Justice Department's antitrust concerns.

If AT&T does not consummate the merger, the agency said it does not plan to change the ratings or outlook on AT&T Inc.

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