Bulletin: Ratings On AT&T Inc. Not Affected By Justice Department's Appeal Of Time Warner Acquisition

NEW YORK (S&P Global Ratings) July 13, 2018—S&P Global Ratings said today that its ratings on AT&T Inc., including the 'BBB' corporate credit rating, are not immediately affected by the announcement that the Department of Justice (DOJ) filed a notice of appeal on the federal judge's June 12, 2018, decision to allow AT&T to acquire Time Warner Inc. (Warner Media LLC). While the outcome of the appeal is uncertain, we believe this is modestly negative for AT&T's credit quality because it could potentially delay certain aspects of integration and cost synergies, distract management, and result in ongoing legal expenses. Additionally, we believe that the appeal could drag on for at least six months, if not longer. The appeal could also

...NEW YORK (S&P Global Ratings) July 13, 2018--S&P Global Ratings said today that its ratings on AT&T Inc., including the '###' corporate credit rating, are not immediately affected by the announcement that the Department of Justice (DOJ) filed a notice of appeal on the federal judge's June 12, 2018, decision to allow AT&T to acquire Time Warner Inc. (Warner Media LLC). While the outcome of the appeal is uncertain, we believe this is modestly negative for AT&T's credit quality because it could potentially delay certain aspects of integration and cost synergies, distract management, and result in ongoing legal expenses. Additionally, we believe that the appeal could drag on for at least six months, if not longer. The appeal could also prove to be negative for Warner Media bondholders since AT&T has not provided any guidance on how it plans to address this debt and the appeal could delay its decision-making process. If AT&T provides a guarantee or financials for Warner Media that enable a stand-alone...

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