Fitch Ups America Movil, Sees Limited Acquisitions

Fitch has upgraded America Movil to A minus from BBB+, including approximately $4.5bn in senior unsecured debt. The agency praises the telecom’s strong subscriber growth, revenues and cash flow and the expectation that management will maintain a relatively conservative credit profile over the long term. “Potential acquisition opportunities for America Movil in Latin America are currently limited,” says Fitch. “While further acquisitions can not be ruled out, Fitch believes that if total debt to EBITDA were to approach 1.5x through debt-financed acquisitions the current rating could be maintained if America Movil demonstrated a clear path for leverage to return in the near term to the historical, approximate 1x level,” it adds. According to the agency, the firm’s cash balances as of March 31 was over $1.9bn and upcoming maturities for the next three years are about $1.9bn.