S&P affirms Telemar

Standard & Poor's said it affirmed the BBB- long-term corporate credit rating on Tele Norte Leste Participações SA and Telemar Norte Leste SA, collectively known as the Telemar Group.

The agency said it affirmed its brAAA Brazil national scale corporate credit rating on the company, along with the brAAA Brazil national scale corporate credit rating on Brasil Telecom SA and the brAA issue rating on the Telemar Participações SA.

The outlook is stable.

The affirmation reflects an assumption that Telemar will substantially strengthen its credit metrics with the fresh money to come from a capital injection by Portugal Telecom SPGS SA in several entities of the group, S&P said.

Telemar's business profile is satisfactory, reflecting its dominant market position in fixed-line and data services within certain regions of Brazil, the agency said.

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