Axtel Downgraded by Moody’s

Axtel saw its rating downgraded to B3 with a negative outlook from B2 by Moody’s. The Mexican telecommunication company The ratings agency says the action is in response to negative free cash flow generation and uncertain business prospects. Cash levels dropped to $72m March 31, down from $106m on December 31, 2010, against annual interest payments of $80m. The company also faces significant competition from incumbent players such as Telmex, the ratings agency says.