Strong market position in Brazilian telecom industry; Solid cash flow generation; and Adequate debt maturity profile. Exposure to a highly competitive sector; Significant investment needs; and Somewhat high gross debt levels. Standard&Poor's Ratings Services' ratings on Brazil-based telecom company Oi S.A. (Oi) and its subsidiary Telemar Norte Leste S.A. (TMAR) reflect our view of the group's "satisfactory" business risk profile, "intermediate" financial risk profile, and "adequate" liquidity. The company has a dominant market position in Brazil's telecommunications industry and maintains strong operating cash flow due to its revenue diversification through its fixed-line, wireless, and broadband products. The offsetting factors are intense competition in the sector, which could pressure the company's profitability. Oi also needs to improve broadband capacity
