S&P assigns BB- rating to OAS perpetual notes

Standard & Poor's said it affirmed its BB- global scale and brA- national scale ratings on OAS SA. The outlook remains stable.

At the same time, S&P assigned a BB- global scale issue-level rating to OAS Finance Ltd.'s proposed perpetual notes of up to $300 million. OAS Finance is a wholly owned finance subsidiary of OAS SA.

The notes will benefit from unconditional guarantee from OAS SA, Construtora OAS SA and OAS Investimentos SA.

The ratings on OAS continue to reflect the company's "fair" business risk profile and "aggressive" financial risk profile, S&P said. The ratings also reflect the company's large debt due to aggressive growth strategy in previous few years and some execution risks associated with the ramp-up of its main investments.

The positive rating factors are OAS' favorable market position in the Brazilian engineering and construction industry and the expectation that the company's growth strategy will moderate and it will pay down its debt in the next few years, the agency said.

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