S&P affirms Axtel, notes

Standard & Poor's said that it affirmed Axtel SAB de CV's B+ long-term corporate credit rating and the B+ rating on the company's senior notes with a 3 recovery rating, indicating the expectation of meaningful (50% to 70%) recovery in the event of payment default.

The outlook is stable.

The ratings reflect strong competition from other fixed-line operators, growing competition from the fast-growing mobile services segment and cable providers and the company's dependence on Telmex interconnection and significant capital expenditures, which could increase its leverage, S&P said.

Axtel's wide reach within Mexico and its flexible, advanced network support the rating, the agency said.

For the last 12 months ended Sept. 30, Axtel posted a total debt-to-EBITDA ratio of 3.2 times.

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