AT&T brings US preferred structure to European hybrid market

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By Mike Turner
12 Feb 2020

AT&T, the US telecoms company, broke new ground in the European bond market on Wednesday by issuing a €2bn perpetual non-call five year preferred security.

The structure gives AT&T 50% equity credit under US accounting rules, as well as from the rating agencies. Typical European-style hybrid capital instruments would only give a US company between 25% and 50% credit under US accounting rules. It has expected ratings of Ba1/BB+/BB+.

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