SBC, BellSouth Ratings Cut by S
SBC Communications Inc. and BellSouth Corp. had their credit ratings cut by Standard & Poor’s as the companies lose local-phone clients and prepare to take on more debt to finance an acquisition.
The long-term credit ratings on SBC, BellSouth and their Cingular Wireless joint venture were reduced one level to A, the fifth-lowest investment-grade rating, S&P; said. Cingular’s planned $41-billion purchase of AT&T; Wireless Services Inc. will increase debt, S&P; said. Corporate credit ratings for SBC and BellSouth, the No. 2 and No. 3 local-phone carriers, have declined as they lose clients to wireless and cable carriers.
Shares of San Antonio-based SBC fell 15 cents to $25.82 while BellSouth rose 12 cents to $27.07, both on the New York Stock Exchange.
Inside the business of entertainment
The Wide Shot brings you news, analysis and insights on everything from streaming wars to production — and what it all means for the future.
You may occasionally receive promotional content from the Los Angeles Times.
