The rating on San Antonio, Texas-based SBC Communications Inc. reflects the substantial net free operating cash flow that is expected to continue to be generated by its wireline business, which provides substantial flexibility to continue to reduce overall debt levels. The company also has continued to aggressively expand its product offerings to both win back and retain customers, including accelerating the marketing of digital subscriber line (DSL) residential broadband, and extending features and functionalities offered, including unified wireless and wireline messaging. SBC benefits from the business diversity provided by its wireless business via its 60% interest in Cingular Wireless LLC. While access-line losses to the cable TV companies is expected to accelerate in the 2005-2006 time frame, the rating assumes
