...- 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....
