S&P rates America Movil notes BBB

Standard & Poor's said it assigned its BBB rating to América Móvil SA de CV's $1 billion senior notes due 2035.

S&P also affirmed its BBB/stable/-- foreign currency corporate credit rating, which reflects the foreign currency sovereign rating of the United Mexican States, and its BBB+/stable/-- local currency corporate credit rating on the company. S&P also affirmed the mxAAA and mxA-1+ Mexican scale ratings assigned to America Movil.

Proceeds from the issuance will be used to finance capital expenditures.

S&P said the ratings on America Movil reflect its significant presence in Mexico, where its cellular subsidiary, Radiomovil Dipsa SA de CV (Telcel), generated 51% of America Movil's revenues during 2004 and contributed 73% of its EBITDA (compared with 61% and 70%, respectively, during 2003).

The ratings on America Movil also reflect the company's relatively short history, the added business risk exposure to the Brazilian economy, the effect that further acquisitions may have on its balance sheet, and the increased competition in its two main markets, Mexico and Brazil, the agency said.

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