Fitch rates Oi notes B-

Fitch Ratings said it assigned a B-/RR4 rating to Oi SA's senior unsecured PIK toggle notes due 2025.

The agency said the ratings incorporate Fitch's country-specific treatment of recovery ratings, which caps the notes at RR4, resulting in a rating equal to Oi's issuer default rating of B- with a stable outlook.

Fitch previously withdrew the ratings on Oi's senior notes and debentures that were outstanding prior to the debt exchange.

The ratings reflect improvements to Oi's financial profile after the conclusion of the judicial reorganization plan, principally the large reduction in debt and the extension of maturities and deferral of interest payments, the agency said.

The elimination of the company's debt overhang, along with a planned R$4 billion capital increase and its current cash position, will enable it to make sorely needed investments in its broadband and mobile networks, Fitch said.

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