Press Release By Fitch Ratings Toronto-06 June 2025: Brazil's telecommunications sector will maintain strong credit trends amid macroeconomic uncertainties, underpinned by industry consolidation and steady demand growth in the core mobile market, says Fitch Ratings. Declining capex needs in the coming years will allow issuers in the sector to maintain strong financial profiles and further increase their financial flexibility. Brazil's three largest telecom carriers - Telefonica Brasil, TIM S.A. and its parent TIM Brasil, all rated 'AAA(bra)' with a Stable Rating Outlook, and Claro, a wholly owned subsidiary of America Movil (A-/Positive) - continue to benefit from the mobile telecom sector's consolidation in 2022, which reduced the number of large players from four to three. Mobile services account for more than 70% and more than 95% of revenues for both Telefonica Brasil and TIM Brasil, respectively.