Fitch affirms Telefonica Moviles Chile

Fitch Ratings said it affirmed Telefonica Moviles Chile SA's local-currency issuer default rating at BBB+, foreign-currency issuer default rating at BBB+ and $300 million senior notes due 2015 at BBB+.

The outlook is stable.

The ratings reflect the company's strong market position, mobile services portfolio, moderate regulatory risk and financial flexibility, the agency said.

The company's solid financial profile incorporates the expectation of stable leverage and strong funds from operations generation, the agency noted.

The ratings also consider the company's leadership position, strategy and capacity to improve the mix of post-paid customers by upscaling services to customers and approach to preserve and maximize average revenue per user, Fitch said.

The ratings also consider ownership by Telefonica SA (BBB+/negative), the agency said.

For the 12 months ended June 30, leverage of total debt to EBITDA was 1.1x and net debt to EBITDA is 0.3x.

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