U.S. telecommunications provider AT&T Inc. announced that it will spend about $18.2 billion on its winning bids in the recently concluded AWS-3 spectrum auction. We are lowering our corporate credit rating and issue-level ratings on AT&T to 'BBB+' from 'A-', reflecting our expectation that adjusted debt to EBITDA will be around 3x and funds from operations (FFO) to debt will be in the low- to mid-20% area over the next few years. The stable outlook reflects our expectation that leverage will be around 3x over the next couple of years and will not likely improve meaningfully due to intense competition in the wireless industry, as well as the potential for additional debt-financed acquisitions and investments. NEW YORK (Standard&Poor's)
