Fitch upgrades Entel

Fitch Ratings said it upgraded Empresa Nacional de Telecomunicaciones SA's (Entel) ratings to BBB from BBB-, including the long-term foreign-currency and local-currency issuer default ratings and senior unsecured notes.

Fitch also raised Entel's national long-term rating and local unsecured notes to AA-(cl) from A+(cl).

“The upgrades reflect Fitch's expectations for sustained improvement in Entel's operational performance given the solid results of its Chilean business relative to pre-pandemic levels and the positive cash flow momentum of its Peruvian operation. Fitch forecasts that Entel's financial structure will remain solid with gross and net leverage below 2.5x and 2x, respectively, which is commensurate with a BBB rating. These compare positively with pre-pandemic ratios of 3.8x and 2.5x, respectively,” the agency said in a press release.

The outlook is stable.

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