Moody's rates Brasil Telecom bonds Baa2

Moody's Investors Service said it assigned a Baa2 rating to Brasil Telecom's proposed 1 billion Brazilian real of five-year global bonds.

Telemar Norte Leste SA's senior unsecured issuer rating was affirmed at Baa2, along with its €750 million of senior unsecured foreign-currency notes due in 2017 at Baa2, $1 billion of 5.5% senior unsecured foreign-currency notes due in October 2020 at Baa2, 540 million Brazilian real of senior unsecured local-currency debentures due in 2013 at Baa2 and Aaa.br, 1.6 billion Brazilian real of senior unsecured local-currency debentures due 2012 at Baa2 and Aaa.br, 2.25 billion Brazilian real of senior unsecured local-currency debentures issued in two series due in 2015 and 2020 at Baa2 and Aaa.br.

Tele Norte Leste Participacoes SA's senior unsecured issuer rating was affirmed at Baa3 and $300 million of 8% structured notes due 2015 at Baa3.

The outlook is stable.

The proposed new issuance is part of Telemar's liability management to improve its debt maturity profile, the agency said.

Moody's said it views the companies as having a similar credit risk following their integration.

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