Fitch lowers TV Azteca view to stable

Fitch Ratings said it affirmed TV Azteca SAB de CV's long-term foreign-currency and local-currency issuer default ratings at B+.

The outlook also is revised to stable from negative.

Fitch also said it affirmed the company's senior notes at B+ with recovery rating of RR4.

The outlook revision reflects an expectation that the company will maintain stable EBITDA and free cash flow generation over the medium term following its material performance recovery in 2016, the agency said.

The stable outlook also considers concerns about the company's ability to retain adequate liquidity, including its ability to cope with its upcoming bond maturity in 2018, Fitch said.

The ratings reflect the company's second largest market position in the Mexican broadcasting industry and its solid content production, the agency said.

The ratings are tempered by its limited financial flexibility due to the breach of its incurrence covenant of the senior notes, Fitch said, along with performance volatility in recent years and slow growth outlook.

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