...Telecom Argentina S.A.'s ratings reflect the company's strong business position as the leading integrated telecom operator in Argentina. The company benefits from a solid financial profile, underpinned by its robust operational cash flow generation and relatively conservative capital structure. The company has demonstrated an ability to pass through inflation to consumers, which blunts macroeconomic concerns to a degree. However, the severe Argentine peso depreciation of mid-2018 and the potential effects on liquidity and solvency remain key credit concerns. The Foreign Currency (FC) Issuer Default Rating (IDR) is constrained by the Argentine Country Ceiling of `B', while the Local Currency (LC) IDR of `BB'/Negative reflects the company's strong underlying credit profile. Country Ceilings are designed to reflect the risks associated with sovereigns placing restrictions on private sector corporates that may prevent them from converting local currency to any foreign currency under a stress...
