Brazil-based telecommunications company Oi announced that the PT's €897 million investments in Rio Forte's commercial paper weren't received on the due dates, July 15 and 17. As a result, Oi will have a lower-than-expected cash position for debt reduction, which somewhat weakens its already pressured credit metrics. We are lowering our corporate credit and debt ratings on Oi to 'BB+' from 'BBB-' on global scale and to 'brAA+' from 'brAAA' on national scale, and also removing them from CreditWatch negative. The outlook on the corporate credit ratings is stable. The stable outlook reflects our expectation that Oi will gradually improve its credit metrics over the next few years through better operations and cash flow generation. SAO PAULO (Standard&Poor's)
