AT&T Inc.'s Proposed $1.75 Billion Perpetual Series C Preferred Shares Rated 'BB+'

NEW YORK (S&P Global Ratings) Feb. 13, 2020--S&P Global Ratings today assigned its 'BB+' issue-level rating to Dallas-based AT&T Inc.'s proposed $1.75 billion of perpetual series C preferred shares. The company will use the proceeds from these shares for general corporate purposes, which we expect will include share repurchases. We classify the instrument as having intermediate equity credit (50% equity) based on the proposed terms and rate it two notches below our 'BBB' long-term issuer credit rating on the company to reflect its subordination and payment flexibility due to the optional deferability of the interest payments. Our intermediate equity assessment for the series C preferred stock reflects the instrument's permanence, subordination, and the payment flexibility of its interest payments. The

...February 13, 2020 NEW YORK (S&P Global Ratings) Feb. 13, 2020--S&P Global Ratings today assigned its '##+' issue-level rating to Dallas-based AT&T Inc.'s proposed $1.75 billion of perpetual series C preferred shares. The company will use the proceeds from these shares for general corporate purposes, which we expect will include share repurchases. We classify the instrument as having intermediate equity credit (50% equity) based on the proposed terms and rate it two notches below our '###' long-term issuer credit rating on the company to reflect its subordination and payment flexibility due to the optional deferability of the interest payments. Our intermediate equity assessment for the series C preferred stock reflects the instrument's permanence, subordination, and the payment flexibility of its interest payments. The instrument is perpetual with no maturity date but is callable five years after issuance. If the company were to redeem the issuance then without replacement using an instrument...

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