Fitch rates Telemar notes BBB-

Fitch Ratings said it assigned a BBB- rating to Telemar Norte Leste SA's €750 million senior notes due 2017. The company's BBB- local- and foreign-currency issuer default ratings and an AA+(bra) national scale rating are unchanged, as are the BBB- ratings assigned to its $1 billion senior notes due 2020 and $750 million senior notes due 2019 and the AA+(bra) ratings assigned to its R$2.6 billion fourth debenture issuance due 2011 and 2012 and R$2.25 billion fifth debenture issuance maturing 2015 and 2020.

The agency maintains BBB- local- and foreign-currency issuer default ratings and AA+(bra) national scale rating on the company's parent company, Tele Norte Leste Participacoes SA.

Finally, Brasil Telecom SA's BBB- local currency issuer default rating, AA+(bra) national scale rating and the AA+(bra) rating on its R$1.08 billion fifth debenture issuance due 2013 are also unchanged.

The outlook is positive.

Proceeds from the new notes are expected to be used for refinancing needs and general corporate uses.

The agency said the ratings and positive outlook reflect its view of the company's stronger competitive position after the acquisition of Brasil Telecom, diverse service offering, solid cash flow generation and the expectation that as a result of this, the company should approach its net debt-to-EBITDA target of 1.7 times by the end of 2012.

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