Moody’s: America Movil to negative

Moody's Investors Service said it affirmed the global scale A2 senior unsecured ratings of America Movil, SAB de CV and the A2 backed senior unsecured global scale ratings of its subsidiary, Telefonos de Mexico, SAB de CV.

The outlooks were changed to negative from stable.

Moody’s said the change in America Movil's outlook to negative reflects sustained pressure on the company's operating performance arising from increasingly intense competition under tighter regulatory frameworks in a less profitable and lower-growth industry environment across Latin America. Despite poorer performance, the company also directed resources toward increased shareholder returns in 2015, which contributed to negative free cash flow and slowed the deleveraging process.

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