Risk rating agency Fitch confirmed in its annual review the long-term debt rating in foreign and local currency of Colombia Telecomunicaciones, also known as Telefónica Movistar Colombia, of “BBB-“, and maintained the telco’s outlook at “stable”.
This decision reflects Fitch Ratings’ expectations that Telefónica Movistar Colombia “will maintain its position in mobile and fixed services through investments and co-investments in networks. This dynamic should support relatively stable EBITDA generation and leverage.”
“The rating also reflect the company’s position as the second largest telecommunications operator in Colombia, with well-defined B2B, fixed and mobile offerings,” Fitch said in its report, recalling the commercial volume experienced in the fixed and mobile telecommunications market in Colombia.
Fabián Hernández, CEO of Telefónica Movistar Colombia said that the announcement of “Fitch Ratings is a product of the company’s operational performance during the last years, its positioning in the market and the reduction of its debt, but also of the business strategy adopted to position itself as a key player in the deployment of fiber optics in Colombia, with which we hope to reach more than 5.5 million households by the end of 2024.”
Telefónica Movistar is a major telecommunications carrier in Colombia, operating under the retail name Movistar for mobile telephony. It is a subsidiary of the Spanish telecommunications multinational Telefónica.