Fitch rates AT&T loans A

Fitch Ratings said it assigned an A rating to AT&T Inc.’s proposed $9.155 billion senior unsecured credit agreement consisting of a $6.286 billion term loan facility (tranche A facility) and a $2.869 term loan facility (tranche B facility).

Fitch also said it assigned an A rating to AT&T’s $2 billion 18-month senior unsecured credit agreement.

The company’s issuer default rating and debt securities remain on Rating Watch negative, where they were placed in May 19 after news of its acquisition of DirecTV.

The proceeds from this offering will be used for general corporate purposes, including acquisition-related payments, Fitch said.

The acquisition will improve AT&T’s financial flexibility owing to DirecTV’s strong free cash flows and the significant equity component in the transaction financing, the agency said.

The addition of DirecTV also will strengthen AT&T’s position in the evolving video landscape, offering the potential to capitalize on trends for mobile video and over-the-top video delivery, Fitch said.

Other benefits include the scale brought by DirecTV’s substantially larger video subscriber base and the diversification of AT&T’s revenue stream, the agency said.

© 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.