Moody’s lowers Empresa de Telecom de Bogota

Moody's Investors Service said it downgraded Empresa de Telecom de Bogota SA, ESP's corporate family and senior unsecured ratings to Ba3 from Ba1.

The agency also said it revise the company’s outlook to negative from stable.

The downgrades reflect a revision of expectations for government support to the company if needed, Moody’s said.

Previously considered strong expectations, government support forthcoming if needed is now considered moderate, the agency said.

Moody's said it believes the company has become a less strategic asset for the City of Bogota.

The downgrades also consider the company’s s weaker liquidity position and deteriorating operating performance with limited room for recovery over the next 18 months, the agency said.

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