• Fitch recognises Vivo’s business model with triple-A rating despite the COVID-19 effect.

Fitch gives Vivo AAA-grade

Fitch gives Vivo AAA-grade

Source: Artem Kniaz / Unsplash

Credit agency Fitch issued a “first‑time national long‑term rating” of ‘AAA’ (stable) for Telefónica|Vivo. The rating was said to reflect Vivo’s “solid business model… as well as its conservative financial profile, with robust liquidity and low financial leverage”, alongside expectations that the impact of the coronavirus pandemic will be limited. The stable outlook incorporated the agency’s expectation that Vivo will maintain strong operational performance over the next three years, supported by the growth of its contract base and blended average revenue per user, as well as its fibre‑to-the‑premises services, while keeping its costs under control. Fitch’s rating for Telefónica Group as a whole is ‘BBB’ (stable).