Moody's might upgrade Embratel

Moody's Investors Service said it placed on review for possible upgrade Empresa Brasileira de Telecomunicacões SA's senior unsecured issuer ratings of Baa3 on the global scale and Aa1.br on the Brazilian national scale.

The rating action follows the announcement that América Movil SAB de CV will launch an exchange offer to the shareholders of Carso Global Telecom SAB de CV and an offer for the exchange of all the outstanding shares of Telmex Internacional SAB de CV owned by minority shareholders. If all shareholders of Carso Telecom accept the exchange offer, América Movil will become the controlling shareholder of Telmex Internacional, which is the ultimate holding company for Embratel.

The agency said the review will assess the possibility of access to América Movil's strong cash generation as well as operational synergies from being part of a larger telecommunications group.

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