EM LATAM CREDIT: Telefonica Moviles Chile Fitch Downgrade - Negative
Jun-05 16:32
(MOVCHI; -/BBneg/BB-neg)
"Fitch Downgrades Telefónica Móviles Chile to 'BB-'; Outlook Negative" - FitchRatings
Downgrade from BBB- and left outlook negative as the rating agency cites increased leverage to 5x in 2024 and 6.6x in 1Q 2025 due to lower EBITDA generation.
Concerns about the ability to deleverage persist given strong competition and despite dividend and capital expenditure reductions. Fitch forecasts net leverage of 4.7x in 2025 and cash burn so there seems to be a risk of a further downgrade in the next 12 months if the company cannot reduce their net leverage below 4.7x.
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