AT&Ts credit rating was downgraded to two notches above junk by two rating agencies on Friday, after

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AT&T’s credit rating was downgraded to two notches above junk by two rating agencies on Friday, after the US telecommunication giant completed its $80bn acquisition of Time Warner.

1. Explain why AT&T has been downgraded.

2. What effects will the downgrading have on AT&T’s ability to raise further debt?

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Corporate Finance Principles And Practice

ISBN: 9781292450940

9th Edition

Authors: Denzil Watson, Antony Head

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Question Posted: Oct 29, 2023 08:24 AM

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AT&Ts credit rating was downgraded to two notches above junk by two rating agencies on Friday, after

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ATTs credit rating was downgraded for several reasons Increased Debt Burden ATTs acquisition of Time Warner involved taking on a significant amount of debt to finance the 80 billion transaction This s...View the full answer

Corporate Finance Principles And Practice

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