Moody's downgrades Oi

Moody's Investors Service and Moody's Latin America said they downgraded Oi SA's ratings to Baa3 from Baa2 on its global scale and to Aa1.br from Aaa.br on its national scale.

Concurrently, Moody's downgraded the ratings of Telemar Participacoes SA, Oi's holding company and owner of 56% of its common shares, to Ba1 from Baa3 on its global scale and to Aa2.br from Aa1.br on its national scale.

The outlook is negative.

Moody's said the downgrades were triggered by Oi's elevated leverage and the fact that the company will take longer to deleverage than Moody's expected.

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