Bulletin: Oi S.A.'s Sale Of Unitel Will Support Capital Expenditures And Is In Line With Our Expectations

SAO PAULO (S&P Global Ratings) Jan. 24, 2020--S&P Global Ratings said today that its ratings and outlook on Oi S.A. (global scale: B/Negative/--; national scale: brA-/Negative/--) are not immediately affected by the announcement that it sold all of its shares in Portuguese holding company, PT Ventures SGPS S.A., to Sonangol E.P. for about $1 billion. PT Ventures holds shares in two Angolan companies, Unitel S.A. and Multitel - Serviços de Telecomunicações Lda., and it receives dividends from both entities. The sale is in line with our expectations that Oi would sell assets to rebuild its cash position and maintain its capital expenditures (capex) plan in order to reverse the revenue decline, and to improve profitability and cash flows. Nonetheless, we

...January 24, 2020 SAO PAULO (S&P Global Ratings) Jan. 24, 2020--S&P Global Ratings said today that its ratings and outlook on Oi S.A. (global scale: B/Negative/--; national scale: brA-/Negative/--) are not immediately affected by the announcement that it sold all of its shares in Portuguese holding company, PT Ventures SGPS S.A., to Sonangol E.P. for about $1 billion. PT Ventures holds shares in two Angolan companies, Unitel S.A. and Multitel - Servitos de Telecomunicat)es Lda., and it receives dividends from both entities. The sale is in line with our expectations that Oi would sell assets to rebuild its cash position and maintain its capital expenditures (capex) plan in order to reverse the revenue decline, and to improve profitability and cash flows. Nonetheless, we believe that the company's capex for 2021 and 2022 could run into delays because Oi still has a significant pipeline of asset sales that includes real estate assets, towers, datacenters, and other noncore assets. Our negative...

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