Oi S.A. Downgraded To 'CCC-' From 'CCC+' On Rising Risk Of Debt Restructuring; Outlook Negative - S&P Global Ratings’ Credit Research

Oi S.A. Downgraded To 'CCC-' From 'CCC+' On Rising Risk Of Debt Restructuring; Outlook Negative

Oi S.A. Downgraded To 'CCC-' From 'CCC+' On Rising Risk Of Debt Restructuring; Outlook Negative - S&P Global Ratings’ Credit Research
Oi S.A. Downgraded To 'CCC-' From 'CCC+' On Rising Risk Of Debt Restructuring; Outlook Negative
Published Nov 07, 2022
3 pages (1515 words) — Published Nov 07, 2022
Price US$ 150.00  |  Buy this Report Now

About This Report

  
Abstract:

In our view, Oi S.A. is facing a higher risk of debt restructuring than we previously anticipated, with EBITDA interest coverage below 1x despite the recent conclusion of its asset sales plan. In addition to a potential reduction in the post-closing sale price of its mobile assets, the company announced on Oct. 27, 2022, that it has hired a financial advisor to assist in discussions with creditors in order to optimize its capital structure. On Nov. 7, 2022, S&P Global Ratings lowered its global scale issuer credit rating on Oi S.A. to 'CCC-' from 'CCC+' and the national scale rating to 'brCCC-' from 'brBB'. We also lowered our issue ratings on the senior unsecured debt to 'CCC-' from 'CCC+' and

  
Brief Excerpt:

...November 7, 2022 - In our view, Oi S.A. is facing a higher risk of debt restructuring than we previously anticipated, with EBITDA interest coverage below 1x despite the recent conclusion of its asset sales plan. - In addition to a potential reduction in the post-closing sale price of its mobile assets, the company announced on Oct. 27, 2022, that it has hired a financial advisor to assist in discussions with creditors in order to optimize its capital structure. - On Nov. 7, 2022, S&P Global Ratings lowered its global scale issuer credit rating on Oi S.A. to '###-' from '###+' and the national scale rating to 'brCCC-' from 'brBB'. We also lowered our issue ratings on the senior unsecured debt to '###-' from '###+' and on the senior secured debt to '###' from 'B-', with no change in the recovery ratings. - The negative outlook indicates that we could further downgrade Oi S.A. if the company takes steps toward debt refinancing that we might consider as potentially distressed. SAO PAULO (S&P...

  
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:
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S&P Global Ratings’ Credit Research—S&P Global Ratings’ credit research provides analysis on issuers and debt obligations of corporations, states and municipalities, financial institutions, insurance companies and sovereign governments. S&P Global Ratings also offers insight into the credit risk of structured finance deals, providing an independent view of credit risk associated with a growing array of debt-securitized instruments.

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Cite this Report

  
MLA:
S&P Global Ratings’ Credit Research. "Oi S.A. Downgraded To 'CCC-' From 'CCC+' On Rising Risk Of Debt Restructuring; Outlook Negative" Nov 07, 2022. Alacra Store. May 13, 2025. <http://www.alacrastore.com/s-and-p-credit-research/Oi-S-A-Downgraded-To-CCC-From-CCC-On-Rising-Risk-Of-Debt-Restructuring-Outlook-Negative-2913510>
  
APA:
S&P Global Ratings’ Credit Research. (). Oi S.A. Downgraded To 'CCC-' From 'CCC+' On Rising Risk Of Debt Restructuring; Outlook Negative Nov 07, 2022. New York, NY: Alacra Store. Retrieved May 13, 2025 from <http://www.alacrastore.com/s-and-p-credit-research/Oi-S-A-Downgraded-To-CCC-From-CCC-On-Rising-Risk-Of-Debt-Restructuring-Outlook-Negative-2913510>
  
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