S&P rates America Movil notes BBB+

S&P said it rated America Movil SAB de CV’s (AMX) planned notes due 2027 and 2032 BBB+ and placed the rating on CreditWatch with negative implications.

America Movil plans to spin off its telecom towers and other related passive infrastructure in Latin America into a newly created company, Sitios Latinoamerica SAB de CV, to which S&P assigned a preliminary BB+ issuer rating.

Once the spinoff is complete, Sitios will assume responsibility for the notes, and there will be no recourse to America Movil. “Therefore, the notes will reflect the creditworthiness of Sitios Latinoamerica, which we expect to be lower than that of AMX,” S&P said in a press release.

If the spinoff is not completed by Dec. 15, AMX has the option to redeem the notes.

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