Fitch rates AT&T debt A

Fitch Ratings said it assigned an A rating to AT&T Inc.’s debt issue in Taiwan.

AT&T’s issuer default rating is A and its ratings remain on Rating Watch negative, where they were placed in May after news that it plans to acquire of DirecTV.

DirecTV’s wholly-owned indirect subsidiary, DirecTV Holdings LLC, has an issuer default rating of BBB-.

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

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

It 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.

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