Entel Downgraded on Acquisition Debt

Entel Downgraded on Acquisition Debt

Chile Corporate & Sovereign Strategy

Moody's has downgraded Empresa Nacional de Telecomunicaciones (Entel) to Baa2 from Baa1, it says. The move is based on the telecom’s elevated leverage following the acquisition of Nextel Peru for $400m. The agency expects negative pressure on cash flows from higher capex in Peru, as well as from investments related in Entel’s home market. “Entel’s announced lower dividend payout rate for the next couple of years to 50% from 80% of net profit will not be sufficient to improve credit metrics in th

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