Axtel Downgraded by Fitch

Axtel, the Mexican telecommunications company, was downgraded to B+ from BB minus by Fitch. The company’s outlook was also revised to stable from negative. The ratings agency says the downgrade is the result of the company’s increasing leverage and continued negative free cash flow. The agency believes Axtel’s total debt-to-Ebitda ratio will remain close to 3x with free cash flow remaining negative to minimal. Moody’s downgraded the company to B3 with a negative outlook in May.