Home Credit Ratings and Research Residential Mortgage-Backed Securities S&P Global Ratings’ Credit Research Oi S.A.

Oi Downgraded To 'B+' From 'BB-' And Placed On Watch Negative On Failed Merger Proposal

Published Feb 26, 2016

3 pages (1448 words) — Published Feb 26, 2016

Price US$ 150.00 | Buy this Report Now

About This Report

Abstract:

LetterOne disclosed yesterday that Telecom Italia doesn't want to participate in the potential merger with Oi, which would have accompanied a capital injection of up to $4 billion into the company. As a result, we believe that Oi now faces more challenges to reduce its high debt. We're lowering our global scale corporate credit and issue-level ratings on Brazil-based telecommunications company Oi to 'B+' from 'BB-' and our national scale ratings to 'brBBB-' from 'brA-'. At the same time, we placed the ratings on CreditWatch with negative implications, indicating that we might lower the ratings by more than one notch in the next three months depending on Oi's strategy to reduce debt. SAO PAULO (Standard&Poor's) Feb. 26, 2016--Standard

Brief Excerpt:

...+ LetterOne disclosed yesterday that Telecom Italia doesn't want to participate in the potential merger with Oi, which would have accompanied a capital injection of up to $4 billion into the company. As a result, we believe that Oi now faces more challenges to reduce its high debt. + We're lowering our global scale corporate credit and issue-level ratings on Brazil-based telecommunications company Oi to 'B+' from '##-' and our national scale ratings to 'brBBB-' from 'brA-'. + At the same time, we placed the ratings on CreditWatch with negative implications, indicating that we might lower the ratings by more than one notch in the next three months depending on Oi's strategy to reduce debt. SAO PAULO (Standard & Poor's) Feb. 26, 2016--Standard & Poor's Ratings Services lowered its global scale corporate credit and issue-level ratings on Oi S.A. to 'B+' from '##-'. We also lowered our national scale ratings on the company to 'brBBB-' from 'brA-'. The recovery ratings on the company's rated...

Report Type:

Ratings Action

Ticker

TEPR4@BZ

Issuer

Oi S.A.

GICS

Integrated Telecommunication Services (50101020)

Sector

Global Issuers, Structured Finance

Country

Brazil

Region

Latin America

Format:

PDF

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MLA:	S&P Global Ratings’ Credit Research. "Oi Downgraded To 'B+' From 'BB-' And Placed On Watch Negative On Failed Merger Proposal" Feb 26, 2016. Alacra Store. May 11, 2025. <http://www.alacrastore.com/s-and-p-credit-research/Oi-Downgraded-To-B-From-BB-And-Placed-On-Watch-Negative-On-Failed-Merger-Proposal-1587561>

APA:	S&P Global Ratings’ Credit Research. (). Oi Downgraded To 'B+' From 'BB-' And Placed On Watch Negative On Failed Merger Proposal Feb 26, 2016. New York, NY: Alacra Store. Retrieved May 11, 2025 from <http://www.alacrastore.com/s-and-p-credit-research/Oi-Downgraded-To-B-From-BB-And-Placed-On-Watch-Negative-On-Failed-Merger-Proposal-1587561>

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