We believe Dallas-based AT&T Inc. may not be able to achieve financial metrics fully supportive of the current rating within a reasonable timeframe. We are placing our ratings on the company, including our 'A' corporate credit rating and the 'A-1' short-term and commercial paper ratings, on CreditWatch with negative implications. We expect that a potential downgrade of the corporate credit rating, if any, would be limited to one notch. On July 28, 2010, Standard&Poor's Ratings Services placed its ratings on Dallas-based AT&T Inc. on CreditWatch with negative implications. This includes the 'A' corporate credit rating and the 'A-1' short-term and commercial paper ratings. Approximately $70 billion of debt was outstanding at June 30, 2010. The CreditWatch placement reflects
