S&P: Coltel view to negative

S&P said it revised the outlook on Colombia Telecomunicaciones SA ESP (Coltel) to negative from stable and affirmed its BB corporate credit and issue-level ratings.

The agency also said it affirmed the B rating on the company's hybrid capital securities.

The outlook revision is a result of Coltel's weaker-than-expected results, S&P said.

Intensified competition, dampened domestic demand and the depreciation of the Colombian peso weakened the company's EBITDA generation, the agency said.

Those factors ultimately increased Coltel's debt-to-EBITDA ratio to more than 5x and hurt the company's cash flow generation, S&P said.

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