Fitch assigns AT&T notes A-

Fitch Ratings said it assigned an A- rating to AT&T Inc.’s euro note offering of senior unsecured debt, consisting of €1.25 billion 1.3% notes due 2023 and €1.25 billion of 2.45% notes due 2035.

The outlook is stable.

Proceeds are expected to be used for general corporate purposes, including the repayment of upcoming debt maturities.

Fitch said the rating and stable outlook reflect AT&T's intent to delever to a net leverage target of 1.8 times over a three-year period following the completion of all pending transactions, including spectrum.

The agency estimates the 2015 transactions will cause net leverage to rise to pro forma 2.3 times to 2.4 times from about 1.8 times at year-end 2014. In addition, the company is likely to reach gross leverage of roughly 2 times, which in Fitch's view is appropriate for the A- rating, by the end of 2017.

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