Moody’s Lowers Maxcom Outlook

Moody’s has lowered the outlook on Maxcom’s B3 rating to stable from positive. The move was prompted by the likelihood of a weakening of the Mexican telecom’s business and revenue growth through 2009, explains the agency. That would extend the period in which the company could reverse its negative free cash flow generation. While Mexico’s large unmet demand for telecom services helps Maxcom’s prospects, lower purchasing power in its target markets and weaker economic conditions contribute to a slower growth outlook.