S&P rates America Movil notes

Standard & Poor's said it assigned its BBB- rating to América Móvil SA's $300 million 144A senior notes due 2007 and affirmed its BBB-/stable/-- foreign currency corporate credit rating, which reflects the foreign currency sovereign rating of the United Mexican States, and its BBB+/stable/-- local currency corporate credit rating on the company.

S&P also affirmed the mxAAA and mxA-1+ Mexican scale ratings assigned to America Movil.

Proceeds from the issuance will be used to refinance existing short-debt maturities.

S&P said America Movil is one of the most important telecommunication companies in Latin America, based both on the number of wireless subscribers and investments realized, these being made in high-growth markets currently with low wireless penetration.

The agency said the ratings on America Movil also consider its significant presence in Mexico, where its cellular subsidiary Radiomovil Dipsa SA (known under its trademark Telcel) currently generates about 61% of America Movil's revenues (down from 71% reported a year before), and contributes 70% of its EBITDA (75% in 2002).

On the other hand, ratings also consider the relatively short history of the company, the added business risk exposure to the Brazilian economy, the effect that further acquisitions may have on its cash flow and results, foreign exchange mismatch risks, and competition that presumably will increase in 2004 in its main two markets, Mexico and Brazil.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.