Fitch downgrades Oi

Fitch Ratings said it downgraded Oi SA's ratings, including the long-term foreign-currency issuer default rating to CCC+ from B-, the local-currency IDR to CCC+ from B-, the national rating to B(bra)/stable from BB-(bra)/stable and the 2025 notes to CCC+/RR4 from B-/RR4.

Fitch removed the outlook on the international ratings.

“The downgrade reflects the company's weak operating trends and the deterioration in the Brazilian operating environment, which will hinder Oi's return to growth. While the company has adequate liquidity in 2020, the company's business model and financial performance is unsustainable relative to capex requirements and debt service in 2022 and beyond,” Fitch said in a press release.

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