...March 25, 2021 PARIS (S&P Global Ratings) March 25, 2021--S&P Global Ratings today said that Telefonica S.A.'s (###-/Stable/A-3) fiber projects in Germany, Chile, and Brazil will not materially affect the group's adjusted credit metrics or credit profile. This is because we see the asset and capital expenditure (capex) deconsolidation as permanent, and we believe that the assets are either not strategic for the group or we assess potential S&P Global Ratings reconsolidation adjustments as not material for the group's credit metrics. Although the transactions move capex programs off-book, which is beneficial for Telefonica's cash flow generation and credit metrics, we don't believe the deconsolidation is temporary because Telefonica has no call option and, we understand, it does not intend to consolidate the assets after the fiber buildout phase. We therefore view deconsolidation as an accurate reflection of the underlying economic reality. This contrasts with our view of Telefonica's accounting...
