S&P: Telemar off watch

Standard & Poor's said it removed it BB+ long-term corporate credit rating and its brAA+ national-scale corporate credit rating and its other ratings on Telemar entities from CreditWatch negative, where they were placed on April 23, following Telemar Participações SA's decision to proceed with a debt-funded tender offer to acquire the outstanding nonvoting shares of Telemar Norte Leste SA and Tele Norte Leste Participacoes SA.

The number of shares tendered pursuant to the offer was not sufficient to satisfy the minimum two-thirds requirement condition of the purchase offer, so the offer was terminated, the agency said.

According to S&P, the ratings on the Telemar entities reflect the challenges of an increasingly competitive and shifting environment for telecom companies and some regulatory risk while these risks are partially offset by Telemar's solid operational and financial performance during the past few years and a more favorable economic and business environment in which the company operates.

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