Moody’s gives Ba3 to Axtel notes

Moody's Investors Service said it assigned a Ba3 senior unsecured rating to Axtel, SAB de CV's proposed seven-year senior unsecured notes, which would raise up to $500 million.

The rating is in line with the company's Ba3 corporate family rating.

The outlook is negative.

Note proceeds will be used for debt repayment and related issuance expenses.

Moody’s said the Ba3 corporate family rating is supported by Axtel’s stable and solid margins; its strong customer base in the information technology services to Mexico's enterprise segment; and long-term organic growth opportunities amid rising corporate and residential demand for increased data speed and capacity, and related value-added services.

The rating also reflects the company's strong corporate governance under Alfa's financial policies and oversight, the agency noted.

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