TEXT-Fitch affirms America Movil at 'A'

June 12 - Fitch Ratings has affirmed America Movil's SAB de CV
(AMX) and Telefonos de Mexico's SAB de CV (TMX) local and foreign currency
Issuer Default Ratings (IDRs) and senior unsecured notes at 'A'. Fitch has also
affirmed AMX, TMX and Telmex Internacional SAB de CV (Telint) National Scale
Ratings and senior unsecured Certificados Bursatiles at 'AAA(mex)'. The Rating
Outlook is Stable. A full list of rating actions is provided at the end of this
release.

AMX and its subsidiaries' ratings are supported by diversified fixed and
wireless operations across Latin America, multiple service platforms, large
scale, strong free cash flow, ample financial flexibility and policy of having a
sound financial and liquidity profile. The ratings incorporate the expectation
that management will maintain a relatively conservative financial profile over
the long term. A strong competitive environment and declining prices in voice
services tempers the ratings. The foreign currency IDR is rated above Mexico's
country ceiling of 'A-', the country where the company is domiciled, given the
geographical diversification where 52% of EBITDA is generated outside Mexico and
approximately 85% of EBITDA comes from investment grade countries; in addition a
strong credit profile with committed credit facilities, mitigates transfer and
convertibility risks.

AMX's credit quality is underpinned by its Mexican wireless and fixed units
which account for approximately 35% of revenues and 48% of EBITDA for the 12
months ended March 31, 2012. Recent rulings by Mexican authorities have had a
negative result on America Movil for both fixed and wireless businesses.
However, these negative outcomes should not be material to credit quality on a
consolidated basis. In addition, the MXN12 billion fine imposed by the Mexican
antitrust authority was revoked recently. Fitch believes that if the fine was to
be enforced, it is manageable for AMX given its revenue diversification, strong
cash flow generation and financial profile.

The company's diverse revenue stream, generated by wireless and wireline
businesses outside Mexico, provides the company with cash flow and currency
diversification. Fitch believes a geographically diversified portfolio of assets
and services lowers business risk and cash flow volatility. For the 12 months
ended March 31, 2012, 85% of EBITDA was generated by Mexico, Brazil and Colombia
(including Panama). For this period wireless revenues accounted for
approximately 64% of total revenues and the remainder by fixed services.

KPN Investment Manageable:

In Fitch's opinion, the recent announcements made by AMX to invest in European
telecom companies follows an approach to explore operations in new geographies
at reasonable prices. These investments are expected to help AMX assess whether
in the long term they should or should not continue increasing its presence in
Europe. Fitch views the potential acquisition of a 27.7% stake in Royal KPN NV
(KPN) through a tender offer that ends on June 15, 2012 to be manageable, given
AMX's financial profile and cash flow generation. If successful, AMX should pay
approximately EUR2.8 billion to increase its stake to 27.7% from 5.1% (7.3% as
of June 11, 2012) and should receive close to 11% in dividend yield.

Fitch's long term expectation of leverage for AMX incorporates that net debt to
EBITDA will be at 1.0 times (x). For the 12 months ended March 31, 2012, AMX's
total debt to EBITDA was 1.5x, while net debt to EBITDA approximated 1.2x. For
this period total debt amounted to MXN378 billion (USD29.5 billion) of which 89%
is debt issued in the capital markets and 11% is bank debt. AMX's currency risk
exposure strategy over the past few years is to have the net debt in Mexican
Pesos after considering hedges.

The company's liquidity position is strong. As of March 31, 2012, cash balances
reached MXN60 billion and unused committed credit facilities were USD4 billion
on top of cash from operations (CFO) over the past 12 months of MXN185 billion.
This favorably compares with maturities for the next three years of MXN81.5
billion. In addition, the company's access to capital markets and extended
maturity profile adds to financial flexibility.

Free cash flow is expected to remain strong over the medium term, underpinned by
stable capital expenditures in the next few years of approximately USD9.0
billion-USD9.5 billion. Funds flow from operations (FFO) still has some room to
grow driven by increased mobile penetration, higher adoption and usage of mobile
data and growth in fixed operations outside Mexico. Free cash flow may be
returned to shareholders absent any acquisitions. With respect to acquisitions,
Fitch believes AMX will follow a disciplined approach to its capital structure
and the valuation of any potential acquisition.

Key Rating Drivers:

A positive rating action seems limited at the time given the rating level and
last upgrade in June of 2011. On the other hand, a negative rating action can
occur if net leverage increases between 1.5x-2.0x on a sustained basis due to
operational or strategic factors.

Fitch has taken the following rating actions:

America Movil
--Local currency IDR affirmed at 'A';
--Foreign currency IDR affirmed at 'A';
--Senior notes issuances affirmed at 'A'.
--Mexican national scale rating affirmed at 'AAA(mex)';
--Certificados Burstiles issuances with ticker symbols AMX 10, AMX 10-2 and AMX
10U affirmed at 'AAA(mex)';
--30 Million UF-denominated Chilean Notes Program, including Series A and D
issuances for a combined amount of UF9 million, affirmed at 'AA+(cl)'.

Telefonos de Mexico
--Local currency IDR affirmed at 'A';
--Foreign currency IDR affirmed at 'A';
--Senior notes issuances affirmed at 'A'.

Telmex Internacional
--Mexican national scale rating affirmed at 'AAA(mex)';
--Mexican national scale short term rating affirmed at 'F1+(mex)';
--MXN20 billion Dual Certificados Bursatiles Program affirmed at
'AAA(mex)/F1+(mex)';
--Certificados Burstiles issuances with ticker symbols TELINT09 and TELINT09-2
affirmed at 'AAA(mex)'.

Additional information is available 'www.fitchratings.com'. The ratings above
were solicited by, or on behalf of, the issuer, and therefore, Fitch has been
compensated for the provision of the ratings.

Applicable Criteria and Related Research:
--'Rating Global Telecoms Companies', Sept. 16, 2010;
--'Corporate Rating Methodology', dated Aug. 12, 2011;
--'National Ratings Criteria', Jan. 19, 2011;
--'Rating Corporates Above the Country Ceiling', Jan. 30, 2012;
--'Parent and Subsidiary Rating Linkage (Fitch's Approach to Rating Entities
Within a Corporate Group Structure)', Aug. 12, 2011.;

Applicable Criteria and Related Research:
Rating Global Telecoms Companies - Sector Credit Factors
Corporate Rating Methodology
National Ratings Criteria
Parent and Subsidiary Rating Linkage