SAO PAULO (Standard&Poor's) Aug. 27, 2014--Standard&Poor's Ratings Services said today that its ratings on Brazil-based telecommunications company Oi S.A., including the 'BB+' corporate credit rating, are not immediately affected by the company's announcement that it has hired Banco BTG Pactual to review possibilities for a potential acquisition of Brazil-based TIM Participações S.A (not rated), a subsidiary of Italian telecom operator Telecom Italia SpA (BB+/Negative/--). Given that there is still no formal proposal by Oi to acquire TIM or details on the terms and conditions of this potential acquisition, it's too early to determine the impact of the transaction on the ratings. In our view, Oi doesn't have significant cushion in its financial covenants to add new
