...EBITDA Contraction: Fitch Ratings expects Colombia Telecomunicaciones S.A. E.S.P.'s (ColTel) falling EBITDA trend to continue given a slow diversification from voice revenues to nontraditional services, driving its margins to an average of approximately 31% in 2017¡2019. ColTel's EBITDA contracted by 5.2%, driving the EBITDA margin to 31.6% in December 2016 from 34.8% in December 2015. A fierce competitive landscape has pressured average revenue per user (ARPU) performance, while the peso depreciation and rising inflation have affected the company's cost structure. Suppressed Cash Flow Generation: Fitch expects Coltel's negative FCF generation to remain uncurbed over the medium term. Patrimonio Autonomo de Activos y Pasivos de Telecom (PARAPAT) scheduled payments are estimated to account for over 30% of EBITDA generation during 2017¡2019 and should continue to weigh on the company's cash flow from operations (CFFO). In addition to capex execution, we expect an average negative FCF of approximately...
