Fitch could lift Axtel

Fitch Ratings said it placed its ratings on Axtel SAB de CV on Rating Watch Positive following its announcement of a memorandum of understanding to merge with Alestra S de RL de CV.

Axtel's long-term issuer default rating is currently B.

Fitch said the watch reflects its view that the merged entity will benefit from an economy of scale and operational synergies, mainly in terms of network competitiveness and improved efficiencies, as well as a stronger market presence in the enterprise business segment in Mexico.

Based on the operating result of each entity during the last 12 months as of June 2015, the combined revenues and EBITDA would amount to $1.1 billion and $363 million, respectively, which compares to Axtel's stand-alone figure of $693 million and $192 million.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.