Fitch drops Axtel

Fitch Ratings said it downgraded Axtel, SAB de CV's ratings as follows: local currency issuer default rating to B- from B; foreign currency issuer default rating to B- from B; $490 million senior notes due 2019 to B-/RR4 from B/RR4; and long-term national-scale rating to BB-(mex) from BB+ (mex).

The agency said it has removed the negative outlook on the ratings and placed them on rating watch negative.

The downgrade of Axtel's ratings reflects the pressure over the company's leverage due to weak operating performance in the first half of 2012 which resulted in leverage increasing above the previous expectation of 3.5x, Fitch added.

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