Standard&Poor's Ratings Services' ratings on Brazil-based telecom company Oi S.A. (Oi) and its subsidiary Telemar Norte Leste S.A. (TMAR) reflect our view of the group's "satisfactory" business risk profile, "intermediate" financial risk profile, and "adequate" liquidity. The company has a dominant market position in Brazil's telecommunications industry and maintains strong operating cash flow due to its revenue diversification through its fixed-line, wireless, and broadband products. The offsetting factors are intense competition in the sector, which could pressure the company's profitability. Oi also needs to improve broadband capacity and quality of its service, which will require significant investment. Oi's "satisfactory" business risk profile reflects its position as the largest integrated telecom carrier in Brazil. Oi has a strong competitive
