...Rating Derivation versus Peers Peer Comparison Telefonica Moviles Chile's and Telefonica Chile's ratings of BBB+ reflect the companies' strong business positions and solid financial profiles. The group boasts a stronger financial profile compared to domestic competitors ENTEL (BBB¡/Stable), and VTR Finance (BB¡/Stable). Furthermore, the group's leading market positions in both mobile and fixed services compare favorably with ENTEL and VTR Finance, as they are predominantly mobile and fixed operators, respectively. However, the group does not have the scale of America Movil (A¡/Stable) across the region, and is constrained by the rating of ultimate parent company, Telefonica S.A. (BBB/Stable). The Chilean market has experienced serious price competition over the last few years, which has exerted downward pressure on revenues and margins across the industry. Parent/Subsidiary Linkage The ratings also reflect the strong parent-subsidiary linkage between TMCH and TCH, based on the high level...
