NEW YORK (AP) - Standard & Poor's said Monday its ratings and outlook for
telecom carriers AT&T Inc. and Verizon Communications Inc. remain unchanged
following their winning bids in a recent government airwaves auction.
The companies accounted for $16 billion of the $19.6 billion auction bid for
a chunk of the wireless spectrum that was made available as the U.S. shifts to
digital broadcasting. Verizon Wireless bid $9.4 billion and AT&T, $6.6 billion.
S&P expects AT&T to pay using cash on hand and additional debt and for
Verizon, cash on hand, cash flow, additional debt and proceeds from its pending
sale of some New England assets to FairPoint Communications Inc.
Verizon Communications owns a majority stake in Verizon Wireless, its joint
venture with Britain's Vodafone Group PLC.
AT&T's shares jumped $1.09, or 3 percent, to $37.94 in afternoon trading as
the broader market also advanced. Verizon's shares rose $1.06, or 2.9 percent,
to $37.18.
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