Fitch downgrades America Movil to A-

Fitch Ratings said it downgraded the long-term foreign and local currency issuer default ratings and senior unsecured notes ratings of America Movil SAB de CV to A- from A.

The outlook was revised to stable from negative

Fitch said the downgrade reflects the company's financial profile deterioration since 2015 despite stable performance in recent quarters.

“Fitch expects AMX to continue its deleveraging efforts in the short term backed by FCF generation in the absence of sizable shareholder returns and stabilized operating trends in Mexico,” the agency said in a news release.

“Nevertheless, Fitch believes that the company's adjusted net leverage is likely to remain close to 2.0x over the medium-term, which is deemed weak for the rating level and is in line with other A- telecom operators in Fitch's rating universe.”

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