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Research Update: AT&T Inc. Downgraded To 'BBB+' On Its Plan To Spend $18.2 Billion On AWS-3 Spectrum; Outlook Stable

Published Feb 02, 2015

About This Report

Abstract:

U.S. telecommunications provider AT&T Inc. announced that it will spend about $18.2 billion on its winning bids in the recently concluded AWS-3 spectrum auction. We are lowering our corporate credit rating and issue-level ratings on AT&T to 'BBB+' from 'A-', reflecting our expectation that adjusted debt to EBITDA will be around 3x and funds from operations (FFO) to debt will be in the low- to mid-20% area over the next few years. The stable outlook reflects our expectation that leverage will be around 3x over the next couple of years and will not likely improve meaningfully due to intense competition in the wireless industry, as well as the potential for additional debt-financed acquisitions and investments. (Watch the CreditMatters TV segment

Report Type:

Research Update

Ticker

Issuer

AT&T Inc.

GICS

Integrated Telecommunication Services (50101020)

Sector

Global Issuers , Structured Finance

Country

United States

Region

United States

Format:

PDF

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Cite this Report


MLA:	S&P Global Ratings’ Credit Research. "Research Update: AT&T Inc. Downgraded To 'BBB+' On Its Plan To Spend $18.2 Billion On AWS-3 Spectrum; Outlook Stable" Feb 02, 2015. Alacra Store. May 04, 2025. <http://www.alacrastore.com/s-and-p-credit-research/Research-Update-AT-T-Inc-Downgraded-To-BBB-On-Its-Plan-To-Spend-18-2-Billion-On-AWS-3-Spectrum-Outlook-Stable-1382631>

APA:	S&P Global Ratings’ Credit Research. (). Research Update: AT&T Inc. Downgraded To 'BBB+' On Its Plan To Spend $18.2 Billion On AWS-3 Spectrum; Outlook Stable Feb 02, 2015. New York, NY: Alacra Store. Retrieved May 04, 2025 from <http://www.alacrastore.com/s-and-p-credit-research/Research-Update-AT-T-Inc-Downgraded-To-BBB-On-Its-Plan-To-Spend-18-2-Billion-On-AWS-3-Spectrum-Outlook-Stable-1382631>

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