Brazil-based telecommunications carrier Oi has been expanding its customer base through the offering of bundled services and higher value-added services, which we expect should result in higher cash flow generation. We are affirming our global scale 'BBB-' and national scale 'brAAA' corporate credit and debt ratings on Oi. The stable outlook reflects our expectation that the company will maintain a strong cash-flow generation despite competition in the industry. On May 20, 2013, Standard&Poor's Ratings Services affirmed its global scale 'BBB-' and national scale 'brAAA' ratings on Oi S.A. and its subsidiary, Telemar Norte Leste S.A. (TMAR). We view Oi and TMAR as a single entity for the purpose of our analysis. The affirmation reflects our expectation that the
