S&P affirms Alestra, keeps Axtel on watch

Standard & Poor's said it affirmed its BB corporate credit rating on Alestra S de RL de CV.

S&P also removed this rating from CreditWatch positive implications, where it was placed on Oct. 2. The outlook is stable.

At the same time, S&P kept its B- corporate credit rating on Axtel SAB de CV on CreditWatch positive.

Upon completion of the merger between Alestra and Axtel, the new entity will consolidate into Axtel, and the corporate credit ratings of both companies will converge to BB with a stable outlook.

The rating will reflect Axtel as a “moderately strategic” subsidiary of Alfa (BBB/Stable/--), and will benefit from a one-notch uplift relative to its bb- stand-alone credit profile.

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