Fitch downgrades Entel

Fitch Ratings said it downgraded Empresa Nacional de Telecomunicaciones SA's (Entel) long-term foreign-currency issuer default rating and local-currency IDR to BBB- from BBB. The agency also lowered Entel’s senior unsecured bonds to BBB- from BBB.

Fitch said it also affirmed Entel’s national long-term ratings and national senior issuances at AA-(cl).

“The downgrade reflects ongoing pressure in profitability driven by intense competition in the telecom sector in Chile and Peru, which will limit Entel's deleveraging capacity from its current elevated levels. Fitch expects Entel's gross and net leverage to tend toward 3x and 2.5x, respectively, in the medium term, which is higher than Fitch's previous expectation and more in line with a BBB- rating, the agency said in a press release.

The outlook is stable.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.