MUMBAI (Thomson Financial) - Fitch Ratings said it has affirmed Telefonos de
Mexico, SAB de CV's (Telmex) foreign and local currency IDR at 'A-', following
an announcement by the company that it intends to spin-off its international
operations into Telmex Internacional.
The ratings agency also affirmed Telmex's senior unsecured debt at 'A-'
Fitch said its outlook on the largest fixed-line telecommunications operator
in Mexico is stable.
The spin-off will reduce Telmex's geographical diversification and growth
prospects. Nevertheless, the Mexican operation account for about 86 pct of
consolidated EBITDA and has been crucial to free cash flow. Fitch expects that
the company's pro-forma total debt to EBITDA ratio will remain relatively stable
post the spin-off at approximately 1.5 times.
TFN.newsdesk@thomson.com
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