Following a public tender, Mexico-based telecommunications company América Móvil S.A.B. de C.V. (AMX) is now the controlling shareholder of Telekom Austria, with a stake of about 51%. We view Telekom Austria as a "moderately strategic" subsidiary of AMX, and we anticipate that the planned capital increase will primarily be used for debt reduction. We are raising to 'BBB/A-2' from 'BBB-/A-3' our corporate credit ratings, and raising all issue ratings on its debt. We are also removing all ratings from CreditWatch positive. The stable outlook reflects our expectation that operating performance in Austria will stabilize and the maintenance of a Standard&Poor's-adjusted debt to EBITDA ratio of about 3x after the capital increase. On Aug. 11, 2014, Standard&Poor's
