Fitch Rates America Movil's Chilean Notes Program 'AA+(chl)'.

MONTERREY, Mexico -- Fitch Ratings has assigned a Chilean national scale rating of 'AA+(chl)' with a Stable Rating Outlook to a program consisting of 30 million Unidades de Fomento (UF), equivalent to approximately US$1 billion, to be issued by America Movil, S.A. de C.V.'s (America Movil) in the Chilean capital markets. Proceeds from the program issuances are expected to be used for refinancing purposes and general corporate needs. The UF are daily indexed Chilean peso denominated monetary units that takes into account the effect of the Chilean inflation rate of the previous month.

On March 16, 2006, Fitch affirmed America Movil foreign currency rating at 'BBB+' with a Stable Rating Outlook, and local currency rating at 'BBB+' with a Positive Rating Outlook. Approximately US$3.1 billion in debt was affected by the rating action. The Positive Outlook for the local currency rating reflects the expectation that total debt-to-EBITDA should approximate to 1.0 times (x) by year-end 2006 and EBITDA-to-interest expense should remain above 12.0x. Fitch views that the achievement and support of these protection measures will place the local currency rating more in line with the 'A-' rating category.

The ratings of America Movil are supported by the company's strong market position in the Mexican wireless segment, its diverse and growing portfolio of wireless assets throughout Latin America, and its sound financial and liquidity position. The ratings incorporate the recent agreements to acquire from Verizon Communications Inc. a 100% of Verzion Dominicana C.por A., a 52% interest in Telecomunicaciones de Puerto Rico (TELPRI) and jointly with Telmex a 28.51% interest in Compania Anonima Nacional Telefonos de Venezuela (CANTV), the expectation of additional share repurchases as well as increasing dividend payments.

America Movil's credit ratings are underpinned by Telcel, its Mexican wireless unit. Telcel business fundamentals are supported by strong demand growth and stable EBITDA margins, which result in strong cash flow generation. Telcel accounted for 50% of consolidated revenues and 74% of EBITDA for year-end 2005. Telcel is the largest wireless provider in Mexico, with an estimated market share of 77%. Demand for wireless services in Mexico is still growing at a fast pace; Telcel grew its subscriber base by 23% to 37.6 million wireless lines over the last 12 months ended March 31, 2006.

America Movil has an increasingly diverse revenue stream generated by a growing wireless business outside Mexico that provides the company with important cash flow and currency diversification. The company's non-Mexican subsidiaries accounted for 50% of consolidated revenues and 26% of EBITDA during 2005 and are estimated to generate sufficient cash flow to meet America Movil's consolidated interest expense by approximately 3.5x; a geographically diversified portfolio of assets lowers business risk and cash flow volatility. America Movil, which now operates in 12 Latin American countries outside Mexico, is well positioned to benefit from the wireless growth opportunities present in Latin America. America Movil's average subscriber growth outside Mexico, including acquisitions, was approximately 75% over the last 12 months ended March 31, 2006. As a result, EBITDA margins for these operations have been lower and more volatile due to higher subscriber acquisition costs.

Fitch expects America Movil's recent acquisition announcements to be neutral to its ratings. On April 3, 2006, the company announced that it has entered into agreements with Verizon Communications Inc. to acquire 100% of Verizon Dominicana C. por A. for US$2,062 million, a 52% interest in TELPRI, rated 'BBB+' by Fitch, for US$939 million and jointly with Telmex a 28.51% interest in Compania Anonima Nacional Telefonos de Venezuela (CANTV) for US$676.6 million. The Verizon Dominicana transaction is expected to close during the second quarter of 2006, CANTV and TELPRI transactions are expected to close during the third quarter of 2006 and first quarter of 2007, respectively. Each transaction has been structured as a separate transaction and is not contingent on the close of the others. Regulatory approval will be needed in each jurisdiction. Other shareholders in TELPRI have the right to receive the same price per share as Verizon, and following the close of the sale of CANTV, the joint venture will be required to offer to purchase the remaining shares of CANTV at the same price paid to Verizon. America Movil will need to pay approximately US$867 million for the remainder 48% of the shares of TELPRI and close to US$848 million for half of the remainder 71.49% of the shares of CANTV which giving the timing of the closing of the transactions it is expected that it will be financed with internally generated cash flow. America Movil is expected to finance the acquisitions with cash, without incurring in additional debt (other than assuming US$450 million-US$500 million of existing debt at TELPRI). Fitch will monitor the progress of the closing of the transaction for timing and any material changes to the terms of the transactions. The transactions will add geographic and currency diversification to America Movil.

As of March 31, 2006, the company's liquidity position is strong, with short-term maturities of close to US$2.0 billion, cash balances of US$2.2 billion and ample access to financial markets. In addition, America Movil continues to generate strong free cash flow even with an increased annual capital expenditure plan for 2006 of approximately US$3.0 billion to meet strong expected subscriber growth.

America Movil's financial profile is expected to gradually strengthen over the medium term. Debt levels are expected to remain relatively stable, while EBITDA generation is expected to continue to grow due to organic growth in its existing operations. As a result, financial leverage, as measured by total debt-to-EBITDA, should gradually decrease closer to 1.0x over the near term compared with 1.5x-2.0x over the past few years. Over the same period, interest coverage measured by EBITDA-to-interest expense should remain around 15.0x, compared with 18.0x-23.0x over the past few years. Nevertheless, further increases in shareholder payouts in the form of dividends and share buybacks could moderate these expected improvements. America Movil paid out US$1.2 billion in dividends, including a one time extraordinary dividend of US$980 million, and spent US$630 million in share buybacks during 2005.

America Movil is the largest provider of wireless services in Mexico and Latin America with sales and EBITDA for year-end 2005 of approximately US$16.0 billion and US$4.9 billion, respectively. In total, America Movil is composed of subsidiaries in 13 countries in Latin America plus the United States with 100.6 million wireless subscribers. The company's investments outside Mexico are located in Brazil, Colombia, Ecuador, Argentina, Guatemala, Nicaragua, Honduras, El Salvador, Uruguay, and the United States. The company completed during 2005 the acquisitions of operators in Paraguay, Chile and Peru, expanding its presence in Latin America.

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