Moody’s lowers Entel view to negative

Moody´s Latin America said it changed the outlook on Empresa Nacional de Telecomunicaciones SA (Entel SA) to negative from stable and affirmed the global and national scale corporate family ratings of Ba3 and Aaa.bo, respectively.

The action follows Moody's Investors Service's June 10 decision to change the outlook on Bolivia's Ba3 government bond rating to negative from stable.

The negative outlook reflects the outlook on the ratings of the Government of Bolivia (Ba3 negative), which owns 97.5% of Entel’s shares through the Ministry of Public Works, Utilities and Housing, the agency said. The change of the sovereign outlook to negative from stable incorporates persistent fiscal and balance-of-payment pressures as a result of Bolivia's widening fiscal and current account deficits coupled with the lack of fiscal adjustment measures to compensate for lower hydrocarbon revenues.

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