Overview
- Fitch lifted Totalplay’s long-term issuer rating to B from B- and upgraded its senior secured notes to B (RR4) and senior unsecured notes to CCC+ (RR6).
- The agency cited improved liquidity, lower near-term refinancing needs and an expectation of positive free cash flow over the next two to three years, with leverage forecast below 3.0x.
- Stronger operating metrics supported the move, as Totalplay expanded its fiber footprint to about 17.6 million homes and 5.4 million subscribers, with Fitch projecting higher network penetration and EBITDA margins around 44.5% in 2025.
- Financial flexibility remains constrained by a capital structure with roughly 91% secured debt and about 44% dollar-denominated borrowings, and Fitch applied a multi-notch discount due to governance concerns tied to Grupo Salinas.
- As of September 2025, short-term obligations were about MXN 5.4 billion against MXN 4.8 billion in available liquidity plus MXN 2.1 billion in restricted cash, and Fitch expects around MXN 1.7 billion of bank loans and leases to be repaid in 2026 using available cash.