Moody's may up Embratel

Moody's Investors Service said it placed the Baa2 and Aaa.br ratings on Empresa Brasileira de Telecomunicacoes SA's (Embratel) R$2.43 billion senior unsecured debentures due 2013 under review for possible upgrade.

The outlook is stable.

The review process was triggered by a new law in Brazil that allows fixed-line telecom companies to offer TV services over their networks, Moody's said, and the elimination of the 49% cap on foreign ownership of cable operators.

The review also followed news of the negotiations for Embratel to exercise the option to purchase about 2% in voting shares held by Globo Comunicacao e Participacoes SA, which is awaiting approval from Agencia Nacional de Telecomunicacoes, the agency said.

The conclusion of the transaction would allow Embratel to become Net's controlling shareholder, Moody's said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.