Fitch rates Comcel Trust notes BB+

Fitch Ratings said it expects to assign a BB+ rating to Comcel Trust's proposed $500 million senior unsecured notes.

The agency also said it assigned to the company long-term foreign-currency and local-currency issuer default ratings of BB+.

The outlook is stable.

Comcel Trust is a special-purpose vehicle created in the Cayman Islands to issue the notes on behalf of Tigo Guatemala Group, a group of several legal entities providing primarily mobile telecommunication services under the Tigo brand, Fitch said.

The ratings are based on the combined credit profile of Tigo Guatemala, which guarantees the note on a senior unsecured basis, the agency said.

The proceeds from the notes will be used for a full repayment of Tigo Guatemala's outstanding debt, which amounted to $425 million as of Sept. 30, 2013, Fitch said. The remainder will be used for a shareholder payout, the agency said.

In addition, the company's customized promotion strategy, especially for high-end subscribers, has enabled its EBITDA market share to account for more than 60% of the industry, well above its subscriber market share, Fitch said.

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