Telecom Argentina’s Ratings Unchanged Following Reopening of Senior Unsecured Notes

By Fitch Ratings

Mon 21 Oct, 2024 - 3:53 PM ET

Chicago-21 October 2024: According to Fitch Ratings, Telecom Argentina’s Long-Term Local Currency Issuer Default Rating (IDR) of 'B', Foreign Currency IDR of 'B-', and senior unsecured issuance rating of 'B' with a Recovery Rating of ’RR3’, are unchanged following the company’s up to USD400 million reopening of its 9.5% senior unsecured notes due 2031. The interest rate and maturity date on the above-mentioned notes will not change. Net proceeds will be used to for general liability management and is expected to be debt-neutral. Telecom Argentina’s Rating Outlook is Stable.

Telecom Argentina's ratings reflect Fitch's expectation that the telecom operator will be able to continue mitigating inflationary pressures while maintaining its strong market position. Despite the macroeconomic instability in Argentina, where the majority of its operations and assets are located, the company has historically managed to pass most inflation effects onto consumers, thereby alleviating some macroeconomic concerns.

Telecom Argentina's robust financial and operational profile is supported by its strong cash flow generation, relatively conservative capital structure, and competitive strengths in both fixed and mobile services.