The credit ratings agency Moody’s has said that it sees JP Morgan’s US$20bn bridge loan to AT&T, which will be used to help fund the acquisition of T-Mobile USA, as “credit negative”. In a statement yesterday, Moody’s said that it was making the move…
The credit ratings agency Moody’s has said that it sees JP Morgan’s US$20bn bridge loan to AT&T, which will be used to help fund the acquisition of T-Mobile USA, as “credit negative”.
In a statement yesterday, Moody’s said that it was making the move because JPM’s 18-month commitment to a one-year US$20bn, unsecured bridge loan facility to AT&T highlighted an “increased appetite for risk”.
Moody’s also said that it assumed JPM’s decision to be the sole underwriter for this loan was “an advertisement of its large funding capacity”. But it added that if other banks are encouraged to take on greater single-risk exposure, this would be credit negative for the whole industry.
Moody’s currently gives JPM a Aa1 Negative; B/Aa3 Negative rating.
