JPMorgan's (JPM) AT&T (T) Loan Credit Negative Says Moody's (MCO)

According to Moody's Investors Service (NYSE:MCO) JPMorgan Chase & Co's (NYSE:JPM) being the only underwriter for the $20 billion bridge loan for AT&T Inc (NYSE:T) is a "credit negative."

Moody's analyst Sean Jones stated, "We believe JPM's $20 billion commitment is credit negative, as it highlights JPM's increased appetite for risk."

"If this translates into giving the bank an advantage in winning the mandate to underwrite AT&T's long-term bond issuances to pay off the bridge facility, then it may encourage more banks to take on greater single-risk exposure, which would be credit negative for the industry, including JPM."

The $20 billion loan is to hep AT&T secure the acquisition of T-Mobile USA if it's given approval to go forward.

JPMorgan closed Monday at $45.96, up $0.10, or 0.22 percent.