Bulletin: AT&T Inc.?s €2.75 Billion Unsecured Notes Due In 2030, 2033, And 2037 Are Credit Neutral

This report does not constitute a rating action. NEW YORK (S&P Global Ratings) March 24, 2025--S&P Global Ratings said today its expectations for AT&T Inc. (BBB/Positive/--) are unchanged following the company?s issuance of €2.75 billion unsecured notes due in 2030, 2033, and 2037. Our ratings and outlook on AT&T are unchanged. The positive outlook reflects our expectation that low-single-digit percent earnings growth coupled with modest discretionary cash flow (DCF) could enable AT&T to reduce leverage below our upgrade trigger of 3.25x by 2026. This could support a higher rating notwithstanding a more aggressive shareholder-friendly financial policy that will include share repurchases over the next couple of years. We expect AT&T will use the proceeds for general corporate purposes. S&P Global

...March 24, 2025 This report does not constitute a rating action. NEW YORK (S&P Global Ratings) March 24, 2025--S&P Global Ratings said today its expectations for AT&T Inc. (###/Positive/--) are unchanged following the company's issuance of 2.75 billion unsecured notes due in 2030, 2033, and 2037. Our ratings and outlook on AT&T are unchanged. The positive outlook reflects our expectation that low-single-digit percent earnings growth coupled with modest discretionary cash flow (DCF) could enable AT&T to reduce leverage below our upgrade trigger of 3.25x by 2026. This could support a higher rating notwithstanding a more aggressive shareholder-friendly financial policy that will include share repurchases over the next couple of years. We expect AT&T will use the proceeds for general corporate purposes. S&P Global Ratings-adjusted debt to EBITDA was about 3.3x as of Dec. 31, 2024. Our forecast assumes the U.S. wireless industry remains healthy and competition manageable. Our base- case forecast...

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