AT&T, Verizon to Gain Billions in Cash Flow from Tax Changes, Moody's Says

The recent tax overhaul will boost AT&T and Verizon cash flow by billions of dollars, Moody's said Monday. The changes "will result in an increase in operating cash flow by about $3 billion for AT&T and by up to $4 billion for Verizon," said Mark Stodden, senior vice president. "The extra cash will increase both companies' flexibility to continue investing in capex and modestly reduce leverage, while sustaining high dividends." The higher cash flows are unlikely to affect the pace of telecom consolidation or materially change AT&T's or Verizon's level of capital investment, he added.