Moody’s assigns Oi Brasil notes Ba2

Moody's Investors Service said it assigned a Ba2 rating to the proposed €750 million senior unsecured notes due 2021 to be issued by Oi Brasil Holdings Cooperatief UA and unconditionally guaranteed by Oi SA.

Oi's existing ratings and its Ba1 corporate family rating remain unchanged.

The outlook is negative.

The issuance is part of Oi's liability management with the objective of extending the company's debt maturity profile, and will not affect its leverage metrics since the proposed issuance will replace existing debt.

Moody’s said the rating of the proposed notes assumes that the issuance will be successfully completed as planned and will replace €750 million worth of existing debt.

Oi's Ba1 corporate family rating reflects its scale, geographic diversity, broad asset base and network coverage and strong margins. These strengths are offset by the company's challenges to upgrade its network in Brazil to meet shifting consumer demand, the highly competitive markets in Brazil, the margin pressure it faces from an unfavorable product mix shift and the company's limited financial flexibility, Moody’s said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.