Moody’s rates AT&T notes A3

Moody's Investors Service said it assigned A3 ratings to AT&T Inc.'s new CHF 1.05 billion note offering, which consists of CHF 450 million 1.375% senior fixed-rate notes due 2024, CHF 450 million 0.5% senior fixed-rate notes due 2019 and CHF 150 million 1.875% senior fixed-rate notes due 2030.

Proceeds will be used for general corporate purposes.

AT&T's A3 long-term senior unsecured ratings remain on review for downgrade, including the ratings assigned.

On May 19, 2014, Moody's placed AT&T's A3 senior unsecured ratings on review for downgrade. The review was initiated following AT&T's announcement that it entered into a definitive agreement to purchase DirecTV in a cash and stock deal worth approximately $67 billion, including DirecTV’s net debt.

The review will assess AT&T's ability to integrate DirecTV’s operations while continuing to invest in its core wireline and wireless operations and restore its credit metrics. In particular, Moody's review will focus on AT&T's free cash flow profile and its future tax obligation and capital spending outlook.

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