Fitch changes VTR outlook to negative

Fitch Ratings said it changed the outlook for VTR Finance NV to negative from stable and affirmed the long-term local-currency and foreign-currency issuer default ratings at BB-.

Fitch also affirmed VTR Finance NV's senior secured notes of $550 million due in 2028 at BB/RR3 and the VTR Comunicaciones SpA revolving credit facilities, senior secured notes of $480 million due 2028 and senior secured notes for $410 million due 2029 at BB+/RR2.

“The negative outlook is based on the deterioration of the company's credit profile as a result of weaker than anticipated operational performance and increasing leverage metrics, as well as Fitch's expectation that the credit profile will continue to be pressured in the medium term due to the highly competitive environment in Chile. A materialization of the business combination with America Movil (AMX) in Chile could partially offset the negative expectations of Fitch, considering the integration of operations but uncertainty remains around final structure of the transaction,” the agency said in a press release.

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