We expect Brazil-based telecommunications company Oi to post increasing debt levels as higher costs and expenses pressure its cash flow generation even more than previously expected. We are lowering our global scale corporate credit and issue ratings on Oi to 'BB-' from 'BB+' and our national scale ratings to 'brA-' from 'brAA+'. The outlook remains negative, reflects our view that we could downgrade Oi in the next 12 months if we see increasing refinancing risks and liquidity pressures after the company consumes its current large cash position to pay down debt. On Feb. 15, 2016, Standard&Poor's Ratings Services lowered its corporate credit and issue ratings on Oi S.A. to 'BB-' from 'BB+' The outlook remains negative. The recovery
