Fitch rates Telefonica del Peru notes BBB

Fitch Ratings said it assigned long-term foreign-currency and local-currency issuer default ratings of BBB and stable outlook to Telefonica del Peru SAA.

Fitch assigned a BBB rating to its senior unsecured notes issuance of up to 1.7 billion in Peruvian sol.

The proceeds will be used to fund investments in the company's mobile and fixed networks, the agency said.

The ratings reflect the company's leading market positions in the Peruvian telecom industry with its fully integrated fixed-line and mobile operations, strong network competitiveness and brand recognition and solid financial profile, Fitch said.

The ratings are constrained by its falling mobile market shares due to intense competition, which has resulted in sustained revenue contraction and profitability deterioration, the agency said.

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