Filed under: AT and T (T), Financial Crisis
AT&T Chairman / CEO Randall Stephenson said Tuesday that his company was unable to sell any commercial paper last week for terms longer than overnight.
“Your ability to plan for investment is obviously affected. You kind of don’t know what your cost of capital six months from now is going to be,” Stephenson told The AP. “We’ll just be very guarded, cautious in terms of where we invest, very guarded and cautious in terms of hiring and capital spending. We’ll see where this situation goes.”
Economist David H. Wang told BloggingStocks Wednesday AT&T’s (NYSE: T) challenges selling commercial paper underscore the nature of the financial crisis and the need for lawmakers / policy makers in Washington to act, “with all deliberate speed.”
“When a cash-rich giant like AT&T, the corporate equivalent of an 850 Tri-merged FICO score, has trouble selling commercial paper longer than overnight, a bell should go off in your head,” Wang said, adding that he does not own shares of any telecom company.
Continue reading AT&T says credit market stress crimping operations
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