Moody's lifts Axtel view to positive, debt to Ba3

Moody's Investors Service said it upgraded Mexico-based Axtel SA de CV's corporate family rating and $162.5 million 11% senior unsecured notes due 2013 to Ba3 from B1 to reflect Axtel's improved credit metrics as a result of strong revenues and EBITDA growth.

Moody's also changed the outlook to positive from stable, reflecting the agency's expectation of improving credit metrics as a consequence of revenues growth and disciplined cost management.

Axtel's upgrade is supported by stronger-than-expected revenues and EBITDA growth arising from favorable geographic expansion strategy and efficient cost management in a challenging operating environment that is characterized by falling tariffs as a consequence of tough competition from the dominant telephone carrier and the effects of wireless substitution, the agency said.

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