Fitch downgrades Oi

Fitch Ratings said it downgraded Oi SA’s long-term foreign- and local-currency issuer default ratings to BB from BB+.

Fitch also said it downgraded Oi’s national long-term rating and national long-term debentures to AA-(bra) from AA(bra).

The outlook also was revised to negative from stable.

Fitch also said it downgraded Oi’s senior unsecured and secured debt and the senior unsecured notes issued by Oi Brasil Holdings Cooperatief UA(Oi Netherlands) to BB from BB+.

The downgrades mainly reflect a negative operating environment in Brazil and Oi’s weak market position, the agency said, and its persistent negative free cash flow generation.

Oi’s financial profile continued to deteriorate and is no longer considered strong within the BB rating category, Fitch said.

The ratings reflect the company’s fully integrated fixed- and mobile-service lineup, which enables convergent service offerings, extensive network coverage and incumbent fixed-telephony service provider position in Brazil, the agency said.

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