Fitch rates Telefonica del Peru notes BB

Fitch Ratings said it affirmed Telefonica del Peru SAA's international scale local currency unsecured debt rating at BBB+ and foreign currency unsecured debt rating at BB and assigned a BB rating to its proposed $200 million senior unsecured notes to be issued in local currency and paid in U.S. dollars.

The outlook is stable.

Fitch said the ratings reflect Telefonica del Peru's solid business position as the largest Peruvian telecommunications company, the diversified revenue stream from its various business segments, healthy cash flow generation, relatively low capital expenditure needs and a strong financial profile.

The ratings incorporate regulatory risks, continued pressure on local service tariffs, heightened competition, as well as moderately higher financial leverage following the completion of the debt offering and over the medium term, the agency said.

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