Fitch lifts Alestra senior notes

Fitch Ratings said it affirmed Alestra, S de RL de CV's foreign- and local-currency issuer default ratings at B-, upgraded the senior notes due 2010 to B/RR3 from B-/RR4 and revised the outlook to positive from negative.

The revised outlook reflects growing revenue from the increasingly competitive data, internet and local-services segment, according to the agency.

The agency said that while the company's long term ownership structure remains unclear, Fitch believes Alestra's financial position or credit quality should not be materially affected.

Alestra's ratings continue to reflect its business position as a niche provider, S&P said. Relatively stable revenue combined with moderate capital spending results in positive free cash flow, which the company has used to cut debt, the agency said.

The ratings also incorporate the challenges in the long-distance market, increased competition in the data, internet and local-services segment and medium- to long-term refinancing needs, the agency said.

For the 12 twelve months ended March 30, total debt-to-EBITDA ratio was 2.8 times.

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