...July 20, 2021 SAO PAULO (S&P Global Ratings) July 20, 2021--S&P Global Ratings assigned today its 'B-' issue-level rating to Oi Movel S.A.'s proposed senior secured notes of up to $880 million. We also assigned a recovery rating of '2' to the notes, indicating our expectation of a substantial recovery (between 70%-90%, rounded: 85%) in a hypothetical default scenario. As a result, the rating on the proposed notes incorporates a one-notch uplift from the rating on Brazil-based telecom operator, Oi S.A. (Oi; ###+/Stable/--), which will unconditionally and irrevocably guarantee the notes. Oi will use $700 million of the proceeds to pay Oi M=vel's outstanding debenture due January 2022. The notes' collateral will be the conditional the Brazilian Law Pledge (Penhor), subject to the repayment of the debenture due January 2022 over the rights deriving from the terms of authorization of the use of radio frequencies owned and used by the Oi M=vel for mobile phone communications, and the Brazilian...
