Moody's might downgrade Axtel

Moody's Investors Service said it placed Axtel, SAB de CV's Ba3 corporate family rating and the Ba3 ratings on its $275 million of 7 5/8% senior unsecured global notes due 2017 and $490 million of 9% senior unsecured global notes due 2019 under review for possible downgrade.

The review is a result of weaker-than-expected operating and financial results during the first quarter and the company's weakened competitive position, the agency said.

During the review, Moody's will focus on Axtel's ability to reverse its declining trend and grow revenues and bring EBITDA margin back to historical levels such that growth capex can be financed with internally generated cash.

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