S&P affirms Alestra

Standard & Poor's said it affirmed the B+ ratings on Alestra S de RL de CV and removed the ratings from CreditWatch with negative implications, where they were placed in April.

The recovery rating of 3, indicating 50% to 70% expected recovery in a default, remains unchanged.

The outlook is negative.

The CreditWatch removal is based on a review of the company's business and financial profiles following the completion of Alfa SAB de CV's purchase of AT&T Inc.'s 49% stake in Alestra, S&P said.

Alestra's competitive position has weakened following the loss of its key strategic partner AT&T, but S&P said it expects Alestra to offset this loss by focusing on new offerings within its value-added services portfolio.

However, revenues and EBITDA could come under pressure at the end of 2012 when AT&T's contracts phase out, the agency said.

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