S&P assigns Telefonica Moviles notes BBB-

S&P said it assigned its BBB- issue-level rating to Telefonica Moviles Chile SA's planned senior unsecured notes for $500 million due 2031.

The company will use the proceeds to repay or redeem Telefonica Chile SA's 3 7/8% senior unsecured notes due 2022. TMC will use the remaining net proceeds for other general corporate purposes.

“The proposed transaction doesn't affect our view of the company's credit profile, because its leverage will remain unchanged, the new issuance will extend the maturity profile and we don't expect it to have a material effect on our previous forecasts. The rating on the notes is the same as the issuer credit rating on TMC, because we don't believe there are material financial obligations that would rank ahead of the company's unsecured debt by way of structural or contractual subordination,” S&P said in a press release.

The outlook is stable.

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