Fitch ups Telefonica del Peru notes to BBB

Fitch Ratings said it affirmed Telefonica del Peru SAA's local-currency issuer default rating at BBB+, and upgraded foreign-currency issuer default and S/. 754 million senior notes due 2016 to BBB from BBB-.

The outlook is stable.

The action follows the upgrade of Peru's long-term foreign-currency issuer default rating to BBB- from BB+, its long-term local-currency rating to BBB from BBB- and its country ceiling to BBB from BBB-.

Ratings are supported by a solid business position as the largest Peruvian telecommunications company, diversified revenue stream from various business segments, healthy cash flow generation, relatively low capital-expenditure needs and a strong financial profile, the agency said.

Ratings also incorporate regulatory risks, continued pressure on local service traffic and heightened competition, Fitch said.

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