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S&P downgrades Oi
S&P said it lowered its global scale issuer credit rating on Oi SA to CCC- from CCC+ and the national scale rating to brCCC- from brBB. It also cut the issue ratings on the senior unsecured debt to CCC- from CCC+ and on the senior secured debt to CCC from B-, with no change in the recovery ratings.
“Even though Oi has concluded its asset sales plan, its credit metrics are still weak. We forecast adjusted gross debt to EBITDA above 15x and EBITDA interest coverage below 1x in the next two years. Its liquidity remains less than adequate, with a cash position of R$5 billion as of June 2022, expected to fall to about R$3 billion in the third quarter,” S&P said in a press release.
On Oct. 27, Oi reported it hired Moelis & Co. to advise it on optimizing its capital structure with creditors.
The outlook is negative.
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