AT&T's 3.45 GHz Bidding in Line With Expectations: S&P

AT&T’s industry-leading bids of $9.1 billion in the 3.45 GHz auction won't affect its ratings since expenditures in that range were expected, S&P Global Ratings said in a Wednesday note. AT&T’s adjusted debt to EBITDA ratio remains “elevated in the 3.7x-3.8x range” but should decline after its sale of Warner Media, S&P said. “We view AT&T's longer-term competitive position as weaker relative to that of its wireless peers Verizon and T-Mobile,” S&P said: “While the acquisition of 40 MHz of nationwide spectrum will improve the company's overall mid-band spectrum position, it still operates at a competitive disadvantage to T-Mobile, especially given T-Mobile's head start in building out its 2.5 GHz band for 5G services.” The firm sees few opportunities to buy more mid-band spectrum this year.