Moody’s assigns AT&T notes A3

Moody's Investors Service said it assigned an A3 rating to AT&T Inc.'s new $2,619,000,000 of 4.6% global notes due 2045.

Proceeds will be used for general corporate purposes, including acquisition related payments.

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

On May 19, 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 about $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, the agency will focus on AT&T's free cash flow profile and its future tax obligation and capital spending outlook.

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