Telefónica is a leader in Spain and the Brazilian market
After the blow received by S&P, Telefonica leads the increases of the IBEX 35 thanks to a report from Fitch
According to the rating agency, Spain is one of the most competitive markets in which the fixed-mobile convergence has had a positive impact. Thanks to the investment made by Telefónica, in fiber and content, makes it a leader in the fixed, mobile and FMC segments.
This allows Spain to be at the forefront of Europe thanks to the investment in fiber provided by the country, an advantage that places them at the highest levels of coverage, both in access to conduits and poles as well as shared use of the network thanks to the contributions offered by Telefónica.
Regarding the Brazilian market, Fitch experts believe that the separation between Latin America and Brazil in the business area is a potentially positive measure to benefit the credit profile of companies.
However, it is expected that the “funds for 2020 of net leverage of operations” will allow “to reach 3.7x against a reduction threshold of 3.6x”, as specified by the experts in a report.
Although they recognize that there is a currency risk with the depreciation of the Brazilian real that its competitors do not have.
K. Villarroel
Source: finance
