Moody's may upgrade Brasil Telecom

Moody's Investors Service said it placed Brasil Telecom SA's Ba1 global scale senior unsecured rating under review for possible upgrade based on the company's achievement of positive margins in its mobile telephony business, cost reduction efforts and maintenance of strong credit metrics.

The Aa1.br national scale senior unsecured rating was affirmed with a stable outlook.

The agency said its review will focus on the sustainability of credit metrics in light of the significant changes expected for the Brazilian telecommunications industry over the near to medium term and will consider recent trends in traffic, revenue and margins by product and the company's financial policy going forward, in particular with regard to dividend payout.

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