Diversified product portfolio and geographic presence; Positive growth opportunities in Brazil offsetting the revenue declines in Portugal; Fierce competition, mainly in Brazil's mobile segment; and Expected improving profitability due to recent initiatives to reduce costs and expenses. Current high leverage metrics, which should improve on stronger operating cash flow generation; Capital expenditure (capex) intensive business; Management's commitment to sell assets to reduce debt; and Adequate liquidity and access to equity and debt markets. We assign a 'bbb-' anchor to Oi, the higher of two possible outcomes, based on the relative strength of Oi's business risk profile. The stable outlook reflects our expectation that Oi will post higher margins and its more efficient working capital management in Brazil will improve cash
