Moody’s Puts Alestra On Negative Review

Moody’s has placed Mexican telco Alestra on negative outlook after its parent company, announced it would buy the 49% stake it does not yet own in the company from AT&T. Moody’s says it is concerned about the exit of AT&T and the possible negative impact on future earnings. Mexico-based analysts believe Alfa could pay between $265m-$434m for Alestra and then sell it to a strategic player such as Spain’s Telefonica or Mexico’s Axtel. During the last 12 months ending on December 31, Alestra’s revenues and adjusted Ebitda amounted to $363m and $128m, respectively.