Fitch affirms AA- rating for Digitel

Wednesday, March 23, 2011

Fitch has affirmed the long-term national rating of Venezuelan mobile telephony operator Digitel at AA-(ven), the agency said in a statement.

The ratings agency also confirmed its A2 rating on bonds worth 500mn bolívares (US$116mn) issued by the operator and due in 2012. The A2 rating is equivalent to AA-, on the same scale Fitch uses for long-term ratings.

The rating reflects the company's solid credit profile as well as its strong financial position, while also taking into account increasing competition in the local mobile telephony market, which resulted in lower volume of operations for Digitel last year, Fitch said.

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The rating could be affected by increasing regulatory risks in the country, the agency added.

Digitel expects total capex this year to reach US$100mn.

To see the full report, in Spanish, use this link