Nov 21 - Standard & Poor's Ratings Services said today that it assigned its
'A-' global scale and 'mxAAA' national scale ratings to Mexican wireless
telecommunications company America Movil S.A.B. de C.V.'s (AMX's; A-/Stable/--)
Mexican peso (MXN) 20 billion senior unsecured notes due 2022. AMX plans
to use the proceeds of the notes for general corporate purposes.
Our issuer credit rating on AMX reflects our view of the company's "strong"
business risk profile and "modest" financial risk profile. Our assessment is
based on the company's leading position in the Latin American telecom
industry, its solid profitability, and our expectation that it will maintain
robust cash flow generation despite intense competition in some of its
markets. Partly offsetting these factors are the company's cash flow
generation that is somewhat concentrated in Mexico (foreign currency rating
BBB/Stable/A-2, local currency rating A-/Stable/A-2), the more stringent
regulation in the markets where it operates, and the continuing threat to its
wireline business from wireless substitution and cable.
Several elements mitigate the structural subordination of the notes, in our
view. The company's extensive geographic diversity makes it unlikely that the
company would default simultaneously in all of the countries in which it
operates. Also, AMX's strong asset base, the concentration of debt in a small
number of subsidiaries, and the fact that most of the company's guaranteed
debt will mature over six years lead us to believe that the guaranteed and
unguaranteed creditors will obtain similar recoveries in an event of default.
We expect that AMX's future debt issuances will be unguaranteed.
RELATED CRITERIA AND RESEARCH
-- Criteria Methodology: Business Risk/Financial Risk Matrix Expanded,
Sept., 18, 2012
-- Liquidity Descriptors For Global Corporate Issuers, Sept. 28, 2011
-- 2008 Corporate Criteria: Analytical Methodology, April 15, 2008
America Movil S.A.B. de C.V.
Global Scale Ratings A-/Stable/--
National Scale Rating MxAAA/Stable/--
MXN20 billion senior unsecured notes due 2022
Global Scale Rating A-
National Scale Rating MxAAA