Moody's rates OAS notes reopening B1

Moody's Investors Service said it assigned a B1 foreign currency rating to OAS' proposed up to $350 million senior unsecured notes due in 2019 to be issued by OAS Investments GmbH and irrevocably and unconditionally guaranteed by OAS SA, Construtora OAS Ltda. and OAS Investimentos SA.

The proposed notes are a reopening of the $500 million bond issued in October 2012.

The net proceeds from the issuance will be entirely used to pay existing debt maturing in 2014 and early 2015. The deal is part of OAS liability management strategy and aims at reducing refinancing risk in the short to medium term.

The outlook is stable.

Moody's said the B1 rating reflects the company's good position in the Brazilian construction market as the 4th largest player, solid track record, and experienced management team. The rating also considers OAS strong backlog of R$18.5 billion (at the end of June 2013) that supports near term revenue generation as well as the positive prospects for infrastructure investments in Brazil and increased participation of the private sector in the company's revenues, the agency said.

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