On Feb. 1, 2007, Standard&Poor's Ratings Services assigned its 'A' rating to AT&T Inc.'s proposed $1 billion of floating-rate notes due 2010 and $500 million 5.625% global notes due 2016. Proceeds will be used for general corporate purposes including repurchases of common stock. At the same time, we affirmed the 'A' corporate credit rating on AT&T Inc., since the proposed notes will not have a material impact on the company's credit profile. The outlook is negative. Pro forma for these financings, AT&T's total debt as of Dec. 31, 2006 was $61.7 billion. The ratings on the enlarged AT&T, a regional Bell operating company, and its related entities reflect the company's continuing dominant position as the largest local telephone
