Fitch upgrades OAS

Fitch Ratings said it has upgraded the ratings of the OAS SA as follows:

• Long-term foreign currency issuer default ratings to B+ from B; long-term local currency issuer default rating to B+ from B; long-term national rating to BBB+(bra) from BBB(bra);

• R$200 million second debenture issue due June 2013, long-term national rating to BBB+(bra) from BBB(bra); R$300 million third debenture issue due December 2016, long-term national rating to BBB+(bra) from BBB(bra); and

• R$250 million fourth debenture issue due January 2027, long-term national rating to BBB+(bra) from BBB(bra); and R$250 million fifth debenture issue due May 2015, long-term national rating to BBB+(bra) from BBB(bra).

The rating of Construtora OAS SA include the following: long-term foreign currency issuer default rating to B+ from B; long-term local currency issuer default rating to B+ from B; and long-term national rating to BBB+(bra) from BBB(bra).

Fitch said it also assigned B+/RR4 rating to OAS Finance Ltd.'s proposed perpetual bonds issuance of $200 million to $300 million.

The outlook for the corporate ratings is stable.

The upgrade of the ratings of OAS group companies reflects Construtora OAS' improved credit metrics, the group's heavy construction company and the main cash generator, and the expectation that the company will continue to report improved results, following the spin-off of the activities of the investments segment, the agency noted.

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