CHICAGO--(BUSINESS WIRE)--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 Fitch has simultaneously withdrawn the ratings as the bonds were repaid.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.
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
Corporate Rating Methodology - Including Short-Term Ratings and Parent and Subsidiary Linkage (pub. 28 May 2014)