...Negative Outlook: The revision of the Rating Outlook to Negative from Stable reflects America Movil S.A.B. de C.V.'s (AMX) continued EBITDA erosion, caused by increasing competitive pressures in its key Mexico market and resultant financial profile deterioration that is not deemed in line with its `A' rating level. The company's commitment to deleveraging by measured shareholder returns amid lower capex requirement will be critical to prevent a ratings downgrade, as any material EBITDA recovery would be challenging in the short to medium term due to a tough operational outlook. Pressures in Mexico: AMX's suppressed EBITDA generation in its main Mexican market is unlikely to be curbed in the short to medium term due to high competitive pressures. The company has been subject to unfavorable reform measures since 2014, while the entrance of AT&T Inc. has also ignited intense price-based competition, leading to rapid average revenue per user erosion of 18% in 2Q16, compared with 2Q15. AMX's...
