S&P rates Pontis IV notes BBB-

S&P said it assigned its BBB- foreign currency issue rating to the senior secured exchangeable notes to be issued by Pontis IV Ltd., an exempted company incorporated with limited liability in the Cayman Islands.

The notes will be mandatorily exchangeable for the existing $200 million notes (still rated BBB-) issued by Globo Comunicacao e Participacoes SA (BBB-/negative/--).

The rating on the senior notes, therefore, reflects that on Globo because, by May 11, 2017, the Pontis IV senior notes will have been exchanged for the 2022 notes issued by Globo, which will be extended to mature in 2027.

Even though Pontis IV is not related to Globo – and Globo does not guarantee the senior notes – S&P said it understands that investors in the senior notes will eventually become creditors of Globo, given the mandatory exchange clause incorporated in the senior notes' indenture.

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