Fitch: Oi view to negative

Fitch Ratings said it revised the outlook on Oi, SA to negative from stable.

The agency also affirmed its local-currency issuer default rating at BBB, foreign-currency issuer default rating at BBB, national scale rating at AAA(bra), R$1 billion senior notes due 2022 at BBB, $1.75 billion senior notes due 2020 at BBB, $750 million senior notes due 2019 at BBB, €750 million senior notes due 2017 at BBB, R$2.25 billion fifth debenture issuance due 2014 and 2020 at AAA(bra) and R$1.1 billion senior notes due 2016 at BBB.

The outlook revision reflects concerns that the company may not meet its financial targets going forward given the current high leverage and competitive environment, Fitch said.

The agency said it expects a gradual reduction in net leverage by 2014 and 2015.

The ratings also consider its strong market position, business scale, diverse service platforms, moderate regulatory risk, cash flow generation and a manageable debt maturity profile, Fitch said.

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