S&P might cut America Movil

Standard & Poor's said it placed its A- corporate credit and issue ratings on America Movil SAB de CV on CreditWatch with negative implications.

The CreditWatch action follows America Movil's Aug. 9 announcement that it intends to acquire the remaining 70.2% of outstanding shares of Koninklijke KPN NV for about €7.2 billion (Ps. 122 billion).

The offer is subject to America Movil acquiring more than 50% of the shares, regulatory approvals, no competing transactions and no material adverse event. The agency said it believes the transaction could happen during the last quarter of 2013.

Although financing details have not been disclosed, S&P said it believes the company will try to finance the acquisition with other sources rather than debt or a combination of both. However, any potential debt financing will weaken the company's credit metrics.

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