Fitch rates Telecel notes BB+

Fitch Ratings said it assigned a long-term rating of BB+ to Telefonica Celular del Paraguay SA's (Telecel) proposed $300 million senior unsecured notes issuance due 2027.

The proceeds will be used to refinance Telecel's existing senior unsecured notes due 2022.

The ratings reflect its leading market positions in Paraguay, supported by its extensive network and distribution coverage and strong brand recognition, Fitch said.

The company's competitive strengths have enabled stable operational cash flow generation and high margins, resulting in the company's solid financial profile, the agency said.

The ratings are constrained by its persistent negative free cash flow generation amid intense competition, Fitch said.

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