MUMBAI (Thomson Financial) - Standard & Poor's Ratings Services said it
affirmed its 'BBB+' long-term corporate credit and senior unsecured debt ratings
on Mexico's largest fixed-line phone company Telefonos de Mexico SAB de CV
(Telmex) with a stable outlook.
The affirmation follows the company's announcement that its shareholders
have approved the spin-off of its international operations to Telmex
Internacional, a new Mexican corporation.
"We do not believe the operation will have an immediate impact on the
issuer's creditworthiness given its solid credit metrics and the concentration
of its free operating cash flow generation in its Mexican operations," S&P said.
S&P said its ratings on Telmex are based on the company's leading position
in the telecom sector in Mexico and its solid credit metrics. The group's
concentration in the Mexican market and the evolving regulatory environment
constrain the ratings, it added.
S&P said following the spin-off, Telmex's financial policy will remain
conservative and that its key financial ratios will improve.
The ratings agency added the stable outlook reflects its view that
notwithstanding the operating and regulatory challenges faced by Telmex, the
group will maintain its leading position in the Mexican telecom sector and solid
credit metrics.
TFN.newsdesk@thomson.com
npr/ssa
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