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Rating Action:

Moody's assigns A2 ratings to America Movil's global notes

 The document has been translated in other languages

Global Credit Research - 14 Apr 2011

Approximately USD364 million in debt instruments affected

Mexico, April 14, 2011 -- Moody's Investors Service assigned A2 ratings to America Movil, S.A.B de C.V. ("America Movil")'s aggregate USD364 million in global senior unsecured notes issued on March 8, 2011. Proceeds from the notes will be used principally for the refinancing of existing debt, including the prepayment of certain global notes owed by Telefonos de Mexico ("Telmex", rated A3 / Aaa.mx stable). The notes are guaranteed by Radio Movil Dipsa, S.A. (Telcel), a Mexican operating subsidiary. The outlook on the ratings is stable.

The following ratings were assigned:

- USD238,814,000.00 in 5.75% global senior unsecured notes due 2015: A2

- USD124,815,000.00 in 5% global senior unsecured notes due 2020: A2

RATINGS RATIONALE

America Movil's ratings are supported by the company's status as Mexico's largest wireless operator with market share of approximately 70%; its # 1 position as regional mobile telecom service provider in Latin America with over 225 million wireless subscribers; its # 10 position in the global telecom universe in terms of revenues and EBITDA; the strong operating cash flow of over USD15 billion in 2010; and its relatively low leverage of 1.5 times adjusted debt/EBITDA in the last twelve months ended in December 31, 2010. Moody's anticipates that America Movil will continue to post stable operating results both on a consolidated basis and in Brazil, an increasingly major market for its services in the region.

Upon the acquisitions of Telmex and Telint in early 2010, the initial credit metrics of the combined company deteriorated slightly, as expected by Moody's. However, America Movil's metrics are still in line with its current ratings. In fact, despite the acquisitions, the company closed 2010 with leverage within its target level of below 1 time net debt-to-EBITDA.

America Movil's liquidity position shows a strong coverage of working capital needs, capital expenditures, near-term debt maturities as well as dividend and tax payments. The company also counts on its sizeable committed USD2 billion revolving credit facility, which matures in April 2011 and is in the process of being renewed and upsized to USD4 billion. However, the lack of a backstop credit facility for its MXN20 billion commercial paper (CP) programs remains a credit constraint. This funding risk is currently mitigated by the company's ample cash balance, strong free cash flow generation and good access to the capital markets.

The stable outlook on America Movil's ratings is based on Moody's expectation that the company will be able to maintain its credit quality by posting positive revenue growth and sustaining its margins, despite increasing competitive challenges across Latin America. The stable outlook also considers an expected reduction in leverage to close one time debt/EBITDA in the next 12 to 18 months.

An upgrade of America Movil's ratings is not envisioned at this point. Any future upgrade consideration will be dependent on the company continuing to improve its operating margins and free cash flow generation, maintaining a conservative financial policy and putting in place an appropriate backstop credit facility for its CP programs.

The ratings could be negatively impacted if the company's operations or financial performance is adversely changed due to intensifying competition; if a change in regulation impacts the company's operations; or if America Movil makes large debt-funded acquisitions or significant returns of capital to shareholders such that adjusted debt to EBITDA is likely to remain above 1.5 times for an extended period of time. A material deterioration in the company's liquidity would also put pressure on the ratings.

For further information on Moody's ratings on America Movil please refer to latest Credit Opinion and Analysis on the issuer at moodys.com.

The principal methodology used in rating America Movil, S.A.B de C.V was the Global Telecommunications Industry Industry Methodology, published December 2010.

America Movil, headquartered in Mexico City, Mexico, is Latin America's leading telecom operator with over 276 million accesses and over 225 million mobile subscribers as of December 2010. It provides services in 18 countries in the Americas, including Mexico, Brazil, Colombia, Argentina, Chile and the U.S. During the last twelve months ended in December 31, 2010, America Movil reported revenues of about USD48 billion, with an adjusted EBITDA of over USD19.3 billion.

REGULATORY DISCLOSURES

Information sources used to prepare the credit rating are the following: parties involved in the ratings, public information, and confidential and proprietary Moody's Investors Service information.

Moody's Investors Service considers the quality of information available on the issuer or obligation satisfactory for the purposes of assigning a credit rating.

Moody's adopts all necessary measures so that the information it uses in assigning a credit rating is of sufficient quality and from sources Moody's considers to be reliable including, when appropriate, independent third-party sources. However, Moody's is not an auditor and cannot in every instance independently verify or validate information received in the rating process.

Please see ratings tab on the issuer/entity page on Moodys.com for the last rating action and the rating history.

The date on which some Credit Ratings were first released goes back to a time before Moody's Investors Service's Credit Ratings were fully digitized and accurate data may not be available. Consequently, Moody's Investors Service provides a date that it believes is the most reliable and accurate based on the information that is available to it. Please see the ratings disclosure page on our website www.moodys.com for further information.

Please see the Credit Policy page on Moodys.com for the methodologies used in determining ratings, further information on the meaning of each rating category and the definition of default and recovery.

Mexico
Nymia C. Almeida
Vice President - Senior Analyst
Corporate Finance Group
Moody's de Mexico S.A. de C.V
JOURNALISTS: 001-888-779-5833
SUBSCRIBERS:52-55-1253-5700

New York
Brian Oak
MD - Corporate Finance
Corporate Finance Group
Moody's Investors Service
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653

Moody's de Mexico S.A. de C.V
Ave. Paseo de las Palmas
No. 405 - 502
Col. Lomas de Chapultepec
Mexico, DF 11000
Mexico
JOURNALISTS: 001-888-779-5833
SUBSCRIBERS:52-55-1253-5700

Moody's assigns A2 ratings to America Movil's global notes
No Related Data.
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