Fitch boosts Telefonica de Argentina

Fitch Ratings said it has taken the following rating actions for Telefonica de Argentina SA: local currency issuer default rating upgraded to BB from BB-, foreign currency issuer default rating affirmed at B+, national-scale rating upgraded to AA+(arg) from AA-(arg) and about $474 million of obligaciones negociables upgraded to BB-/RR3 from B+/RR3.

The outlook is stable.

The agency said that the company's rating actions reflect stronger financial profile, solid business position in the Argentine telecom sector, healthy cash flow generation and a manageable debt maturity profile.

The ratings incorporate a level of implicit support from controlling shareholder, Telefonica SA, which has provided flexibility in the form of intercompany loans in previous years, Fitch added.

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