[June 23, 2011]

Fitch Upgrades America Movil's IDRs to 'A'; Outlook Stable

Fitch Ratings has upgraded ratings for America Movil, S.A.B. de C.V. (America Movil) as follows:

--Local currency Issuer Default Rating (IDR) to 'A' from 'A-';

--Foreign currency (FC) IDR to 'A' from 'A-';

--Approximately US$11.8 billion in senior notes to 'A' from 'A-'.

In addition, Fitch has affirmed the following ratings:

--Mexican national scale rating at 'AAA(mex)';

--Approximately MXN15 billion in Certificados Bursatiles issuances with ticker symbols AMX 10, AMX 10-2 and AMX 10U at 'AAA(mex)';

--30 million UF-denominated Chilean Notes Program, including Series A and D issuances for a combined amount of UF9 million, at 'AA+(cl)'.

The Rating Outlook is Stable.

The rating actions reflect America Movil's diversified fixed and wireless operations across Latin America, multiple service platforms, large scale, strong free cash flow, ample financial flexibility, and policy of maintaining a sound financial and liquidity profile. The ratings incorporate the expectation that management will maintain a relatively conservative financial profile over the long term. Increased regulatory risk in Mexico and declining prices in mobile voice services tempers the ratings. The FC IDR is rated above Mexico's country ceiling of 'A-', the country where the company is domiciled, given the geographical diversification, with 48% of EBITDA generated outside Mexico and more than 80% of EBITDA coming from investment grade countries, in addition to a strong credit profile with committed credit facilities, which mitigates transfer and convertibility risks.

America Movil's credit quality is underpinned by its Mexican wireless and fixed units which account for approximately 40% of revenues and 52% of EBITDA. Recent rulings by Mexican authorities have increased regulatory risk in Mexico for America Movil for both fixed and wireless businesses. However, Fitch believes that negative outcomes related to reductions in interconnection rates in Mexico should not be material on a consolidated basis. In addition, any cash outflow due to fines imposed by the antitrust authority should be manageable given the company's diversification, strong cash flow generation and financial profile. Nevertheless, Fitch expects the company to defend itself from these rulings.

The company's diverse revenue stream, generated by wireless businesses outside Mexico and to a lesser extent fixed-line businesses, provides the company with cash flow and currency diversification. Fitch believes a geographically diversified portfolio of assets and services lowers business risk and cash flow volatility. For the three months ended March 31, 2011 80% of EBITDA was generated by Mexico, Brazil and Colombia (including Panama). For this period, wireless revenues accounted for 64% of total revenues and the remainder by ixed services.

Fitch's long-term expectation of leverage for America Movil incorporates that net debt to EBITDA will be at 1.0 times (x). For the 12 months ended March 31, 2011 America Movil's total debt to EBITDA was 1.2x, while net debt to EBITDA approximated 0.8x. For this period total debt amounted to MXN304.4 billion (USD25.4 billion), of which 87% is debt issued in the capital markets and 13% is bank debt. America Movil's currency risk exposure strategy is to have the net debt in Mexican Pesos after considering hedges.

The company's liquidity position is strong. As of March 31, 2011, cash balances reached MXN93.2 billion and unused committed credit facilities were USD4 billion, on top of cash from operations (CFO) over the past 12 months of MXN171 billion. This compares favorably with maturities for the next three years of MXN66.9 billion. In addition, the company's access to capital markets and extended maturity profile adds to financial flexibility.

Free cash flow is expected to remain strong over the medium term with stable capital expenditures over the next few years at around USD8.5 billion. Funds flow from operations (FFO) still has some room to grow driven by increased mobile penetration, higher adoption and usage of mobile data, and growth in fixed operations outside Mexico. Free cash flow may be returned to shareholders absent any acquisitions. With respect to acquisitions, Fitch believes America Movil will follow a disciplined approach to its capital structure and the valuation of any potential acquisition.

Key Rating Drivers:

A further upgrade in the IDRs is limited at the time given the current rating action. Conversely, a negative rating action can occur if leverage increases between 1.5x-2.0x on a sustained basis due to operational or strategic factors.

Additional information is available 'www.fitchratings.com'.

Applicable Criteria and Related Research:

--'Rating Global Telecoms Companies', Sept. 16, 2010;

--'Corporate Rating Methodology', Aug. 13, 2010;

--'National Ratings Criteria', Jan. 19, 2011;

--'Rating Corporates Above the Country Ceiling', Jan. 5, 2011;

--'Parent and Subsidiary Rating Linkage (Fitch's Approach to Rating Entities Within a Corporate Group Structure)', 14 July 2010.

Applicable Criteria and Related Research:

Parent and Subsidiary Rating Linkage Criteria Report

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=534826

Rating Corporates Above the Country Ceiling

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=594985

National Ratings Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=595885

Corporate Rating Methodology

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=546646

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