Fitch assigns Sitios, notes BBB-

Fitch Ratings said it assigned first-time long-term foreign- and local-currency issuer default ratings of BBB- to Sitios Latinoamerica SAB de CV as well as an unsecured debt rating of BBB-.

Sitios' ratings reflect the company's solid business position due to its ownership of 30,000 towers, which provide critical passive infrastructure to America Movil SAB de CV (AMX; A-/positive) throughout 14 countries in Latin America. The ratings also incorporate predictable revenues and cash flow generation; along with strong and sustainable operating performance, supported by extensive coverage, geographic diversification, scale and favorable demand. Net leverage is expected to decline to solidly below 7x by 2024 from around 8x pro forma as of 2Q22,” Fitch said in a press release.

Sitios' senior notes due 2032, which were originally issued by AMX and rated A-/rating watch negative, have been transferred over to Sitios and downgraded to BBB- because they rank equally with Sitios unsecured debt and are now legal obligations of Sitios, the agency said. Before the transfer, the notes were AMX’s legal obligations. Fitch removed the rating watch negative on the notes.

The outlook is stable.

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