We assume lower proceeds from asset disposals over the near term due to the European Commission's decision to block the sale of O2 U.K. to Hutchison's Three U.K. Although we have revised downward our base-case operating assumptions for Telefonica in 2016 and 2017 to reflect adverse currency movements in many of its Latin American subsidiaries, we project positive organic growth, excluding the effect of currency movements. We are therefore revising our outlook on Telefónica and related subsidiaries Telefónica Moviles Chile S.A. and Telefónica Chile S.A. to stable from positive and affirming our ratings on the companies. The stable outlook reflects our anticipation that all key assets will see continued organic growth in their local currency and that Telefonica's financial policy
