...Rating Derivation Versus Peers Peer Comparison Axtel's ratings of `BB¡' reflect the company's relatively weak financial profile, mainly high leverage, compared with other `BB' category telecom operators in the region. The company's weak market position and small scale of operations are also negative considerations against its peers in the rating category, which is somewhat offset by its business concentration in the enterprise segment with less competition than the residential segment. Parent/Subsidiary Linkage Parent/subsidiary linkage exists between Axtel and Alfa, given the latter's 52.8% ownership in the company. However, the ratings are based on Axtel's stand-alone credit profile given the weak legal and strategic linkages. Country Ceiling No Country Ceiling constraint was in effect for these ratings. Operating Environment No operating environment influence was in effect for these ratings. Other Factors No other factors were in effect for these ratings....
