S&P affirms CTC

Standard & Poor's affirmed its BBB long-term counterparty credit rating on Compania de Telecomunicaciones de Chile SA (CTC) after the closing of the sale of its mobile subsidiary to Telefónica Móviles. The ratings were removed from CreditWatch, where they had been placed on May 20.

The outlook is stable.

S&P said it expects Compania de Telecomunicaciones to apply the proceeds of the transaction to reduce debt.

Compania de Telecomunicaciones enjoys a leading competitive position in the Chilean telecommunications sector and a moderate financial policy that is enhanced by the strength and expertise of its major owner, Telefonica de España SA, according to S&P. These strengths are partially offset by regulatory risk and tariff revisions, which could result in aggressive interference in the company's local-service pricing strategy.

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