Fitch downgrades Oi

Fitch Ratings said it downgraded Oi SA's unsecured senior notes due 2025 and senior secured 2026 notes to C/RR4 from CC/RR4. The agency also lowered Oi’s long-term local- and foreign-currency issuer default ratings to C from CC.

Fitch concurrently downgraded Oi's national long-term rating to C(bra) from CC(bra).

“The downgrades follow Oi's announcement that it has obtained an injunction from Rio de Janeiro's court establishing, among other protection measures, the suspension of enforceability of all obligations related to financial instruments, such as debt principal and interest,” Fitch said in a statement.

The agency noted it will lower the ratings to RD if in its opinion Oi experiences an uncured payment default in its 2025 notes. Oi's ratings will be downgraded to D if the company files for bankruptcy protection.

© 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.