Moody's upgrades Telecel

Moody's Investors Service said it upgraded Telefonica Celular del Paraguay SA (Telecel)'s corporate family rating to Ba3 from provisional B1.

Moody's also said it upgraded the company's senior unsecured global notes due 2022 to Ba3 from provisional B1.

The outlook is stable.

The upgrades are based on Paraguay's sovereign rating upgrade to Ba3 from B1 on Jan. 8 as Telecel's ratings had been constrained by Paraguay's rating, Moody's said.

The ratings are supported by the company's status as No. 1 mobile operator in the country with an estimated 56% market share, the agency said.

The ratings also consider its track record of strong and resilient growth despite changes in government, Moody's said, and its solid credit profile driven by low adjusted leverage of 0.8x.

The ratings are constrained by the company's modest revenue size compared to global peers, the agency added.

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