Fitch affirms Digitel

Fitch Ratings said it affirmed Corporacion Digitel, CA's AA-(ven) national long-term rating, F-1(ven) national short-term rating and the A2 ratings assigned to its bonds and commercial paper.

The outlook remains negative.

The agency said the ratings reflect Digitel's solid credit protection metrics in spite of the fact that it registered a 9.7% fall in sales at the end of December. Its coverage and leverage metrics stood at 5.9 times and 0.9 times, respectively, during the 12 months ended December, both measured with respect to EBITDA.

An increase in competitive pressure and the GDP contraction in 2009 have affected Digitel's operations, and Fitch expects the continuation of this difficult environment throughout 2010. The deepening of the national electricity crisis is another factor that could impact the company's financial profile, the agency said.

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