Moody's rates Opportunity Zain

Moody's America Latina Ltda. assigned a C.br rating on its Brazil national scale and a C rating on its global local currency scale to the proposed R$160 to R$350 million in local subordinated debentures due 2010 to be issued by Opportunity Zain SA.

The outlook is stable.

Moody's said the ratings consider that Opportunity Zain is a holding company, with cash flow solely originated from dividends and interest on own capital paid by Brasil Telecom SA, which is ultimately controlled by Opportunity Zain.

The ratings reflect the rating agency's expectation that dividends received by Opportunity Zain will not provide cash flow sufficient to service the debentures.

Moody's said the C.br and C ratings reflect Moody's expectation of loss severity of 80% or greater for debenture holders under an assumed restructuring of the company's balance sheet that would allow it to service its debt obligations.

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