Brazil-based telecommunications company Oi is completing its merger with Portugal Telecom, which was announced last October. We are affirming our 'BBB-' global scale and 'brAAA' national scale corporate credit and debt ratings on Oi and removing them from CreditWatch negative. The outlook on the corporate credit ratings is negative. The negative outlook reflects a potential downgrade if the company doesn't improve cash flow generation and credit metrics as expected, due to higher operating challenges or if the company doesn't succeed in selling assets. On May 23, 2014, Standard&Poor's Ratings Services affirmed its 'BBB-' global scale and 'brAAA' national scale corporate credit and debt ratings on Oi S.A. and removed them from CreditWatch with negative implications, where they were
