Standard&Poor's said today that SBC Communications Inc.'s (AA-/Stable/A-1+) recent receipt of approval from the FCC for interLATA (local access and transport area) relief in Arkansas and Missouri has no effect on the company's credit ratings or outlook. The ratings and outlook already incorporate receipt of long distance relief in many of the company's franchise areas during the next few years. In 2002, such services will provide an important operating cash flow growth mechanism for the company in the face of ongoing pressures caused by the economic slowdown, including potential continued declines in overall access lines.
