Fitch changes ETB outlook to negative

Fitch Ratings said it changed the outlook for Empresa de Telecomunicaciones de Bogota, SA, ESP to negative from stable and affirmed its long-term foreign-currency and long-term local-currency issuer default ratings at BB+ but downgraded the long-term national scale rating to AA(col) from AA+(col). The outlook on the national scale rating is stable.

“The downgrade in the national scale rating and the negative outlook on the IDRs reflect uncertainty in speed of recovery of its average revenue per user (ARPU) and user migration from the legacy network, stressed EBITDA and compressed cash flow margins, which could result in negative FCF if the company continues with its expansion capital investments,” Fitch said in a press release.

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