Moody’s Asserts AT&T Inc. (T)’s Baa2 Status on $23B EchoStar Spectrum Acquisition

AT&T Inc. (NYSE:T) is one of the top stock picks in Ken Griffin’s stock portfolio. On August 27, ratings firm Moody’s reiterated that the stock is an investment-grade, issuing a Baa2 rating. The positive rating comes on the wireless company inking an agreement to acquire spectrum from EchoStar Corporation for approximately $23 billion.

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The telecommunication giant is to acquire 30 MHz of nationwide 3.45 GHz mid-band spectrum and 20 MHz of nationwide 600 MHz low-band spectrum. The ratings company expects AT&T to reduce its debt ratio to 3.5 times or less within two years, once the $23 billion deal closes.

AT&T expects the spectrum acquisition to enable it to advance its convergence strategy while maintaining its $20 billion capital return objective. The robust revenue growth is expected to allow the company to achieve significant operational efficiencies.

AT&T Inc. (NYSE:T) is a global telecommunications company that provides a range of connectivity services to consumers and businesses, including wireless and mobile phone services, fiber internet, and 5G networks.

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Disclosure: None. This article is originally published at Insider Monkey.