Moody's rates Sitios notes Baa3

Moody's Investors Service said it rated Sitios Latinoamerica SAB de CV's $1 billion of 5 3/8% senior unsecured notes due 2032 Baa3. This is the first time Moody's assigned a rating to Sitios.

Sitios will be spun off from America Movil, SAB de CV, making it one of the largest tower companies in Latin America in terms of number of sites.

“The Baa3 rating considers Sitios' business model that provides high cash flow visibility from contracts containing escalators to compensate for inflation with America Movil, which will be Sitios' anchor tenant representing around 86% of cash flows,” Moody’s said in a press release.

America Movil was the initial issuer of the notes and Sitios will assume all the obligations upon the execution of the spinoff, releasing America Movil from all liabilities related to these notes.

After the spinoff, Torres do Brasil SA and Torres Latinoamerica, SA de CV, the main operating subsidiaries of Sitios, will guarantee the notes.

The note proceeds will be used to refinance indebtedness of America Movil.

The outlook is stable.

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