S&P boosts Telecom Argentina

Standard & Poor's said it raised its long-term corporate credit rating on Telecom Argentina SA (TECO) to B- from D and its long-term Argentina national scale rating to BBB-(ar) from D after the closing of the company's restructuring process in an out-of-court agreement.

At the same time, S&P said it affirmed its B- ratings on the series issued under the restructuring, including the series A notes with final due October 2014 for up to the equivalent of $877 million and series B notes due October 2011 for up to $999 million.

The agency noted TECO's financial profile has improved following the restructuring, reflecting much lower debt levels, longer debt terms, a manageable maturity schedule and a lighter financial burden as a result of the lower debt levels.

The ratings on TECO reflect significant regulatory challenges derived from the freeze and pesification of telecommunications tariffs since early 2002, the agency said.

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