Fitch rates ETB notes BBB-

Fitch Ratings said it assigned BBB- foreign- and local-currency issuer default ratings to Empresa de Telecomunicaciones de Bogota, ESP (ETB) and a BBB- rating to its proposed senior notes due 2018, which will be issued in the amount of 600 million Colombian pesos and will be settled in dollars at market exchange rates.

The outlook is stable.

Proceeds from the notes will be used to fund pension liabilities, to refinance existing debt and to extend the maturity profile.

The agency said the ratings are supported by the company's leading market positions in local and broadband services, strong cash flow generation, sound financial profile and good corporate governance.

Increased competition from new entrants, traffic migration to mobile networks, geographical revenue concentration and a negative trend in the long distance segment temper the ratings, Fitch said.

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