What just happened?
Moody's has lowered its outlook on AT&T (NYSE: T) to negative from stable, citing the fierce unlimited prices wars. Moody's is forecasting cash flows overall could fall as much as 2% this year and be flat in 2018. Verizon's (NYSE: VZ) reprisal of its "unlimited-data" plans after a break of more than five years may be the straw that broke the camel's back, so to speak. Moody's stated:
T-Mobile has "pushed its bigger peers to an unhealthy level of competition," - reducing long-term revenue growth and forcing higher capital spending to keep up with data demands, even providing free DTV Now to everyone"
AT&T is hungry to enter the market, but that alone won't relieve debt pressure either
Lowered expectations always welcome
I l