Fitch ups Southern Peru Copper, Telefonica del Peru to BB

Fitch Ratings said it upgraded the long-term foreign currency rating of Southern Peru Copper Corp. and Telefonica del Peru SAA to BB from BB-. The outlook is stable.

These rating actions follow the upgrade of Fitch's sovereign rating of Peru and country ceiling to BB from BB-, with a stable outlook, which reflects the recent passage of pension reform and sustained robust macroeconomic and fiscal performance.

Fitch said it understands that the pending acquisition of affiliate company Minera Mexico SA de CV by Southern Peru Copper will likely involve a cashless stock-for-stock transaction.

In the event the proposed transaction was not cashless and Minera Mexico's debt is rebalanced between it and Southern Peru Copper, Fitch said it would not expect the underlying credit quality of Southern Peru to deteriorate to a level below the foreign currency rating of Peru.

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