Moody's: America Movil debt A2

Moody's de Mexico said it assigned A2 global foreign-currency and Aaa.mx national scale ratings to America Movil SAB de CV's proposed issuance of up to Ps. 15 billion of debt securities due 2022 through a reopening.

The outlook is stable.

Proceeds from the notes will be used for corporate purposes, including debt refinancing.

The agency said America Movil's ratings are supported by the company's status as Mexico's largest telecom operator, its No. 1 position as regional mobile telecom service provider in Latin America, its No. 9 position in the global telecom universe in terms of revenues, its strong operating cash flow of about $15 billion generated during 2012 and its solid credit metrics.

In line with the new financial policies of America Movil, the proposed debt instruments will be issued without the guarantee of Radiomovil Dipsa, SA de CV, one of America Movil's largest subsidiaries. Despite the effective subordination of the unguaranteed notes, Moody's has not notched the respective ratings below the existing A2 senior rating due to the overall strength of America Movil, the agency said.

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