Moody's lifts Millicom, Comcel views to stable

Moody's Investors Service said it affirmed Millicom International Cellular SA's Ba1 corporate family rating and the Ba2 ratings on its senior unsecured notes.

The agency also said it affirmed the Ba1 ratings of its subsidiary, Comcel Trust.

The outlook on the ratings for both Millicom and Comcel was changed to stable from negative.

The ratings affirmation and change in outlook is a result of news that the United States Department of Justice is closing its investigations regarding potential improper payments made by Millicom on behalf of its joint venture in Guatemala, Comcel, Moody's said.

The investigation was ongoing since October 2015, the agency noted.

The outlook was revised to negative back in February 2016 after Millicom voluntarily self-reported the potentially improper payments to U.S. and Swedish authorities, Moody's explained.

At that point in time and during the entire investigation period, there was very little information available regarding the timing and estimates of legal outcomes or possible monetary fines, the agency said.

The closing of the investigation eliminates the uncertainties surrounding potential large fines that could negatively impact the companies' liquidity and reputation, Moody's said.

Millicom's ratings reflect the company's strong operating performance, solid business model, leading market shares in key geographies and multi-regional balance of profit and cash flow generation, the agency said.

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