Moody's affirms America Movil

Moody's Investors Service said it affirmed America Movil SAB de CV's A2 global foreign-currency and global domestic-currency ratings, along with its Aaa.mx and MX-1 national scale ratings.

The outlook remains stable.

The affirmations were prompted by news that America Movil plans to acquire the 40% of the outstanding shares of Telefonos de Mexico, SAB de CV (Telmex) that are currently not owned by America Movil.

The affirmation was based on a view that America Movil's credit profile will remain in line with its current A2 rating despite the estimated $6.5 billion cash outflow related with the transaction, Moody's said.

The agency said it considers that the company's cash position and strong internal cash generation will allow the company to finance the transaction without deteriorating its liquidity and credit profile.

Moody's also said it believes the company will achieve additional cash savings via the elimination of Telmex's public dividends and ending Telmex's public filing expenses.

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