DCR Raises Colombia Móvil Outlook to Positive

Colombian corporate ratings firm Duff & Phelps de Colombia (DCR) has maintained its B+ rating on the capacity of Colombia Móvil to repay its corporate debt and raised the outlook of the company to positive from in development, DCR said in a statement.

DCR also maintained its AAA rating on the company's guaranteed credit.

Colombia Móvil operates under the Tigo brand that its parent company Luxembourg's Millicom International Cellular uses for its unit in Latin America. Municipally run telcos EPM Telecomunicaciones and ETB also own a combined 49.9% share in the company.

The ratings reflect the successful process of finding a strategic partner for the mobile operator, which culminated in August of last year when Millicom made a sole bid for 50% plus one share of the company for US$480mn from the municipal telcos.

The change in ownership brought an important management restructuring under Millicom's international business model, the statement said.

However, there still exists a risk that the company will not be able to comply with its debt obligations, as factors which influence the financial state of the company fluctuate greatly, the statement added."

Posted to the site on 25th May 2007