Oi S.A.

Overview Key strengths Key risks Covers a large part of Brazil and has a large client portfolio. A highly leveraged balance sheet. Lower required regulatory investments. Fierce competition. Successful execution of its asset sales plan. Small operating cash flows. Oi S.A. completed the sale of its asset in line with our expectations and with its judicial reorganization plan's (JRP) amended terms, which were approved on Sept. 8, 2020. The asset sales don't have an immediate rating effect because our credit analysis already assumes the successful execution, the proceeds, and debt repayments. In April 2022, Oi announced the completion of the mobile asset sales for R$15.9 billion to Telefonica Brasil (brAAA/Stable/--), Claro S.A. (not rated [NR]), and TIM S.A. (NR). The

...Assets sales successfully executed. Oi S.A. completed the sale of its asset in line with our expectations and with its judicial reorganization plan's (JRP) amended terms, which were approved on Sept. 8, 2020. The asset sales don't have an immediate rating effect because our credit analysis already assumes the successful execution, the proceeds, and debt repayments. In April 2022, Oi announced the completion of the mobile asset sales for R$15.9 billion to Telefonica Brasil (brAAA/Stable/--), Claro S.A. (not rated [##]), and TIM S.A. (##). The buyers paid R$14.5 billion and retained R$1.5 billion for up to 120 days for possible offsetting amounts that Oi may have to pay to the buyers due to possible post-closing adjustments and other indemnification obligations provided in the agreement. Moreover, in line with the JRP plan, the company repaid R$4.640 billion in debt owed to The Brazilian Development Bank (BNDES) , Oi M=vel's second issue of debentures of R$2.356 billion, and 98.71% of its...

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