Fitch Upgrades Telefonica del Peru FC IDR Following Sovereign Upgrade.MONTERREY, Mexico -- Fitch Ratings Fitch Ratings An international rating agency for financial institutions, insurance companies, and corporate, sovereign, and municipal debt. Fitch Ratings has headquarters in New York and London and is wholly owned by FIMALAC of Paris. has upgraded the foreign currency Issuer Default Rating (FC IDR IDR In currencies, this is the abbreviation for the Indonesian Rupiah. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. ) of Telefonica del Peru S.A.A. (TDP TDP (thymidine diphosphate): see thymine. ) to 'BBB-' from 'BB+' following Fitch's upgrade of the long-term foreign currency IDR of Peru to 'BB+' from 'BB' and country ceiling upgrade to BBB-' from 'BB+'. In addition, Fitch currently rates TDP's local currency IDR 'BBB+' and PEN754.1 million senior notes due 2016 'BBB-'. The Rating Outlook is Stable. Fitch also maintains an international scale rating of 'BBB' for TDP's Grantor Trust Grantor trust A mechanism of issuing MBS wherein the mortgages' collateral is deposited with a trustee under a custodial or trust agreement. , a securitization of international settlement rates receivables, while Fitch's Peruvian affiliate Apoyo & Asociados has a national rating of 'AAA(pe)' for TDP. TDP's ratings reflect its solid business position as the largest Peruvian telecommunications company, a diversified revenue stream from its various business segments, healthy cash flow generation, relatively low capital expenditure needs, and a strong financial profile. The ratings incorporate regulatory risks, continued pressure on local service tariffs and traffic, heightened competition, as well as moderately higher financial leverage over the medium term. Fitch expects that TDP will continue to maintain a financial profile consistent with the rating category. TDP is the leading telecommunications provider in Peru with 2005 revenues and EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become of US$1.1 billion and US$572 million, respectively. The company participates in several segments, including fixed local services (36% of 2005 revenues), public and rural phone services (17%), long distance (12%), Internet (11%), cable television (10%), business communications (2%), and other services (12%). As of June 30, 2006, the company had approximately 2.4 million lines in service, 389,119 broadband lines and 490,442 cable television subscribers. TDP is 97% owned by Spain's Telefonica S.A. Fitch's rating definitions and the terms of use Terms of Use are rules set up by the owner of an intellectual property or service to govern how they may be legally used. In many cases, terms of service are used as a contractual agreement between a company and users of a service they provide. of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures Policies and Procedures are a set of documents that describe an organization's policies for operation and the procedures necessary to fulfill the policies. They are often initiated because of some external requirement, such as environmental compliance or other governmental are also available from the 'Code of Conduct' section of this site. |
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