Fitch Affirms and Withdraws Telemovil's Ratings

CHICAGO--()--Fitch Ratings has affirmed Telemovil El Salvador, S.A.'s (Telemovil) foreign and local currency Issuer Default Ratings (IDRs) at 'BB'. The Rating Outlook is Stable. Fitch has simultaneously withdrawn the ratings as the bonds were repaid.

KEY RATING DRIVERS

Telemovil's ratings reflect its leading market positions in the mobile and pay-TV segment in El Salvador, backed by its well-established network coverage and quality, and resultant strong brand recognition. The ratings also factor in Telemovil's strong linkage with its parent, Millicom International Cellular S.A. (MIC) (rated 'BB+' by Fitch), which helps Telemovil to achieve synergies related to the larger scale of the parent and provides expertise in management.

The company's credit quality is tempered by a persistently high level of competition which continues to weigh on its market share and cash flow generation.

RATING SENSITIVITIES

The company has completed the repayment of USD311 million notes in April 2015, which were issued by Telemovil Finance Co., Ltd. and fully guaranteed by Telemovil. Fitch will no longer provide ratings or analytical coverage of the issuer.

Additional information is available on www.fitchratings.com

Applicable Criteria

Corporate Rating Methodology - Including Short-Term Ratings and Parent and Subsidiary Linkage (pub. 28 May 2014)

https://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=749393

Additional Disclosures

Solicitation Status

https://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=985961

Endorsement Policy

https://www.fitchratings.com/jsp/creditdesk/PolicyRegulation.faces?context=2&detail=31

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Contacts

Fitch Ratings
Primary Analyst
Alvin Lim, CFA
Director
+1-312-368-3114
Fitch Ratings, Inc.
70 West Madison Street
Chicago, IL 60602
or
Secondary Analyst
Vanessa Villalobos
Associate Director
+506-2296-9182
or
Committee Chairperson
Joe Bormann, CFA
Managing Director
+1-312-368-3349
or
Media Relations:
Alyssa Castelli, +1 212-908-0540
alyssa.castelli@fitchratings.com
Elizabeth Fogerty, +1 212-908-0526
elizabeth.fogerty@fitchratings.com

Contacts

Fitch Ratings
Primary Analyst
Alvin Lim, CFA
Director
+1-312-368-3114
Fitch Ratings, Inc.
70 West Madison Street
Chicago, IL 60602
or
Secondary Analyst
Vanessa Villalobos
Associate Director
+506-2296-9182
or
Committee Chairperson
Joe Bormann, CFA
Managing Director
+1-312-368-3349
or
Media Relations:
Alyssa Castelli, +1 212-908-0540
alyssa.castelli@fitchratings.com
Elizabeth Fogerty, +1 212-908-0526
elizabeth.fogerty@fitchratings.com