Fitch affirms ETB

Fitch Ratings said it affirmed Empresa de Telecomunicaciones de Bogota SA, ESP's local- and foreign-currency issuer default ratings at BBB-.

The outlook is stable.

Fitch said the actions reflect ETB's conservative financial profile, leading market positions in local and broadband services in Bogota and strong cash flow generation.

Ratings are balanced against heightened competition from new participants and mobile substitution, geographical revenue concentration and industry continuous legal claims, the agency said.

Ratings reflect the company's financial profile and capital structure, which the agency said should remain relatively unchanged upon the company's ultimate decision regarding the strategic alternatives it is currently seeking.

The BBB- foreign-currency issuer default rating, at Colombia's country ceiling, incorporates a stronger credit profile than the foreign-currency issuer default rating of the District of Bogota and recognizes the linkage between parent and subsidiary is weak and non-dependent, Fitch said.

The issuer's total adjusted debt-to-EBITDA ratio is 1.1x.

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