DALLAS ( TheStreet) -- AT&T ( T) is being placed on credit watch negative by ratings agency Standard & Poor's, raising the possibility of a credit downgrade for the company. The telecom giant, which is locked in a battle with Verizon ( VZ), announced S&P's decision in a statement released late Tuesday. The ratings agency has not informed AT&T when the notice will be issued.
The move could signal a possible downgrade from AT&T's current A credit rating, although investors largely shrugged off S&P's decision in early Wednesday trading. AT&T's stock was up 11 cents, or 0.42%, to $26.26 shortly after market open, despite a dip in tech stocks that saw the Nasdaq slip 0.09%. AT&T recently grew its second-quarter profit by almost 26%, boosted by booming demand for the Apple ( AAPL) iPhone. Twitter.