MONTERREY, Mexico & BUENOS AIRES, Argentina–(BUSINESS WIRE)–Fitch Ratings has affirmed and simultaneously withdrawn the following ratings for Telefonica de Argentina S.A. (TASA): local currency Issuer Default Rating (IDR) at ‘BB-‘ and foreign currency IDR at ‘B+’. In addition, Fitch has also withdrawn TASA’s national scale rating at ‘AA+(arg)’.
The rating actions follow TASA’s debt payment of ARS495 million during the last month and the expectation that the company will not raise debt in the medium term. Fitch will no longer provide analytical coverage of TASA. Considering indebtedness reported as of June 30, 2011 and the debt payment, TASA has a pro forma total debt of ARS106 million versus latest 12-month EBITDA of ARS1,946 million.
TASA’s ratings are supported by its solid business position, strong cash flow generation, and sound financial profile. The ratings are tempered by regulatory risk and mobile substitution. The foreign currency IDR, rated one notch higher than Argentina’s country ceiling, incorporated a level of implicit support from its controlling shareholder, Telefonica S.A. (TEF) of Spain.
Source: businesswire.com