Fitch affirms TEO's national rating at AA+, with stable outlook

Thursday, December 15, 2011

Fitch has confirmed its AA+(arg) national rating on telecoms operator Telecom Argentina (NYSE: TEO), with a stable outlook, the ratings agency said in a statement.

Fitch also confirmed TEO's ordinary shares at category 1.

Furthermore, the operator's local currency issuer default rating (IDR) and foreign currency IDR were confirmed at BB- and B, respectively.

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Telecom Argentina's ratings reflect continuous strong operating performance driven by its mobile telephony services, strong market position, diversified services portfolio covering multiple platforms, and conservative financial profile, the agency said.

Constraining the ratings is an unfavorable regulatory environment for fixed telephony services, as well as inflationary pressures affecting operational costs, Fitch added.

TEO is controlled by European telco Telecom Italia (NYSE: TI) and local holding Grupo Werthein.

Use this link to read Fitch's full report in Spanish.