CHICAGO--(BUSINESS WIRE)--Link to Fitch Ratings' Report: America Movil S.A.B. de C.V. -- Scenario Analysis (No Separation Anxiety)
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=860791
America Movil S.A.B. de C.V. (AMX) faces no urgency to divest Mexican assets other than avoiding regulations, according to the scenario analysis contained in the latest report in Fitch Ratings' 10 report series 'Top 10 Most-Actively Traded LatAm Corporates'.
One report in the series will be released each day through Feb. 13 per the schedule found at the bottom of this release.
'Fitch expects a stable financial profile over the medium term regardless of the path taken by AMX, either to divest or keep the assets that make AMX preponderant in Mexico. The company's ratings would likely remain intact without the sale,' said Sergio Rodriguez, Senior Director at Fitch.
Fitch believes that AMX will proceed with a sale only if it makes economic sense and it is certain that Mexican regulators will no longer consider the company a preponderant player subject to asymmetric regulations.
Proceeds from a potential sale of assets or subscribers are expected to be used for balancing the capital structure toward a targeted net debt/EBITDA ratio of 1.5x; looking for potential acquisitions in markets outside Mexico; and returning excess cash to shareholders either by paying dividends or share buybacks.
Fitch's 'Top 10 Most-Actively Traded LatAm Corporates' series will be released one report per day as follows:
Feb. 2: Oi Scenario Analysis - Asset Sales and Industry Consolidation are Key to Credit Profile Recovery
Feb. 3: Cemex Scenario Analysis - Road to Investment Grade Runs through the U.S.
Feb. 4: Ecopetrol Price and FX Sensitivity Analysis - Rating Linkage with Sovereign Could Weaken
Feb. 5: America Movil Scenario Analysis - No Separation Anxiety
Feb. 6: Vale Scenario Analysis - Ratings Rock Solid Despite Industry Softness
Feb. 9: Pacific Rubiales Scenario Analysis - Preserving Liquidity Depletes Reserves
Feb. 10: PDVSA - Something's Gotta Give
Feb. 11: Cencosud Scenario Analysis - What Factors Could Stabililze the Company's 'BBB-' Rating
Feb. 12: Construtora Norberto Odebrecht Scenario Analysis - Could CNO Lose its Investment Grade Rating due to Lava Jato Scandal?
Feb. 13: Petrobras - A Political Labyrinth
For more information, a special report titled 'America Movil S.A.B. de C.V.' is available on Fitch's web site at www.fitchratings.com.
Additional information is available at 'www.fitchratings.com'.
Applicable Criteria and Related Research:
Oi, S.A. Scenario Analysis
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=861188
CEMEX, S.A.B. de C.V. (Investment-Grade Path Runs Through the U.S.)
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=861420
Ecopetrol Price and FX Sensitivity Analysis (Rating Linkage with Sovereign Could Weaken)
http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=861405
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