Fitch rates Telemovil notes BB

Fitch Ratings said it assigned to Telemovil El Salvador, SA a local-currency issuer default rating of BB and foreign-currency issuer default rating of BB. The agency also assigned to Telemovil Finance Co. Ltd.'s local-currency issuer default rating of BB and foreign-currency issuer default rating of BB, along with a BB rating on its proposed $450 million senior guaranteed notes due 2017.

The outlook is stable.

Telemovil Finance notes are unconditionally and irrevocably guaranteed by parent Telemovil El Salvador. The proceeds will be used for refinancing all existing Telemovil indebtedness and funding the acquisitions of Amnet and Navega.

The ratings are supported by its leading mobile services market position in El Salvador, strong brand recognition, extensive network coverage, sound financial profile and positive pre-dividend free cash flow, Fitch said.

The ratings are tempered by intense competition and limited geographic diversification, the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.