Oi S.A.'s Existing $1.6 Billion Senior Unsecured Notes Rated 'B' (Recovery Rating: '4')

SAO PAULO (S&P Global Ratings) Sept. 6, 2018--S&P Global Ratings assigned today its 'B' issue-level rating to Oi S.A.'s (global scale: B/Stable/--; national scale: brA/Stable/--) existing $1.6 billion senior unsecured notes due 2025. We also assigned a '4' recovery rating to the notes, which indicates average recovery expectation of 30%-50% (rounded estimate 40%) in the event of payment default. The notes, which Oi issued on July 27, 2018, were part of the company's reorganization plan. Oi issued the notes to exchange part of its obligations that were in default. The issue-level rating on the notes is the same as the global scale issuer credit rating, given that debt is senior unsecured with around a 40% recovery expectation. We recently published

...SAO PAULO (S&P Global Ratings) Sept. 6, 2018--S&P Global Ratings assigned today its 'B' issue-level rating to Oi S.A.'s (global scale: B/Stable/--; national scale: brA/Stable/--) existing $1.6 billion senior unsecured notes due 2025. We also assigned a '4' recovery rating to the notes, which indicates average recovery expectation of 30%-50% (rounded estimate 40%) in the event of payment default. The notes, which Oi issued on July 27, 2018, were part of the company's reorganization plan. Oi issued the notes to exchange part of its obligations that were in default. The issue-level rating on the notes is the same as the global scale issuer credit rating, given that debt is senior unsecured with around a 40% recovery expectation. We recently published a credit analysis on Oi, "Oi S.A. Upgraded To 'B' From '###+' On Reorganization Plan Implementation, Outlook Stable; All Debt Ratings Withdrawn." Issue Ratings--Recovery Analysis We have assigned a recovery rating of '4' to Oi's senior unsecured...

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