AT&T Inc.'s Proposed Perpetual Series A Preferred Shares Rated 'BB+'

NEW YORK (S&P Global Ratings) Dec. 5, 2019--S&P Global Ratings today assigned its 'BB+' issue-level rating to Dallas-based AT&T Inc.'s proposed perpetual series A preferred shares (amount to be determined). The company will use the proceeds from these shares for general corporate purposes, which we expect will include debt reduction and 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 deferability features. Our intermediate equity assessment for the series A preferred stock reflects the instrument's permanence, subordination, and the deferability of its dividend payments. The instrument is perpetual with no maturity

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