Moody's: Telemar outlook developing

Moody's Investors Service said it changed the outlook for Telemar Norte Leste SA (Telemar) and Tele Norte Leste Participacões SA to developing from stable following the announcement that Telemar Participacões plans to proceed with the tender offer for the outstanding non-voting shares of both companies, which amount to about R$11 billion.

The agency also affirms Telemar's Baa2 global local-currency issuer rating and Aaa.br senior debentures and Telemar Participacões' Baa3 global local-currency issuer rating.

The agency said the developing outlook reflects uncertainties regarding the closing, timing and financing of this transaction, as well as uncertainties regarding the post-transaction capital structure and dividend policy going forward.

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