S&P rates América Móvil notes BBB+

Standard & Poor's said it assigned its BBB+ rating to América Móvil SA de CV's Mexican pesos 8 billion senior notes due 2036, whose principal and interests payments will be made in dollars, unless holders of the notes elect to be paid in Mexican pesos.

S&P said it also affirmed its BBB+ long-term corporate credit rating on América Móvil.

The outlook is stable.

The agency said that proceeds from the issuance will be used to finance general corporate purposes.

S&P noted that América Móvil is one of the most important telecommunication companies in Latin America, based on both the number of wireless customers and investments realized, which are made in high-growth markets, currently with relatively low to mid wireless penetration.

On the other hand, the ratings also consider the added business risk exposure to the Brazilian economy, the effect that already-agreed and potential acquisitions may have on its cash flow and results and competition that is expected to intensify in its main two markets, Mexico and Brazil, S&P said.

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