Moody's assigns AT&T notes A3

Moody's Investors Service said it assigned an A3 rating to AT&T Inc.'s new C$1 billion 3.825% global notes due 2020.

The proceeds will be used for general corporate purposes, including the funding of a tender offer for existing debt.

Moody's said AT&T's underlying A3 senior unsecured rating reflects its scale and its strong, resilient and well-diversified cash flows. The rating is also supported by AT&T's dominant position as the No. 1 or No. 2 operator in nearly all of the key segments in which it operates.

Growth has been dampened in recent years due to the disruptive effect of evolving technology and macroeconomic weakness. Yet, AT&T has maintained the financial flexibility and discipline to invest in an asset base which has solidified its market position and which most rivals cannot match.

These positives are balanced by the company's aggressive financial policy that includes a high dividend payout and debt-financed share repurchase activity, the agency said.

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