Fitch rates America Movil notes A-

Fitch Ratings said it rated America Movil, SAB de CV's two benchmark-size notes issuances A-. The agency placed the notes on rating watch negative because they will be transferred to Sitios Latinoamerica, a company that will be created following the spinoff of America Movil's telecommunication towers and other passive infrastructure throughout multiple Latin American countries.

At that point, Sitios will assume America Movil's obligations with respect to the notes and any recourse to America Movil will end.

“Fitch expects to rate the notes BBB- following the completion of the spinoff transaction, reflecting a solid business profile for Sitios but high leverage, given assumptions of $2.7billion in debt and $325 million of EBITDA,” Fitch said in a press release.

America Movil will use the proceeds to paydown debt and for general corporate purposes. Sitios will not directly receive any of the proceeds.

The outlook is positive.

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