Fitch rates OAS notes B+

Fitch Ratings said it assigned a B+ with a recovery rating of RR4 to OAS Finance Ltd.’s $400 million proposed senior unsecured notes due 2021, which will be unconditionally and irrevocably guaranteed by OAS SA, Construtora OAS SA and OAS Investimentos SA.

The proceeds will be used to fully prepay existing debt.

OAS has a long-term foreign-currency issuer default ratings of B+, long-term local-currency issuer default rating of B+ and long-term national rating of BBB+(bra).

Construtora OAS has a long-term foreign-currency issuer default rating of B+, long-term local-currency issuer default rating of B+ and long-term national rating of BBB+(bra).

OAS Investments GmbH has a long-term foreign-currency issuer default rating of B+ and a B+ rating on its $850 million senior notes issue due in October 2019 with a recovery rating of RR4.

OAS Empreendimentos SA has a long-term national rating of BBB-(bra) on its R$L60 million second-debenture issue due in July 2014.

The ratings reflect the group’s high leverage and the necessity of de-leveraging its capital structure on a consolidated basis in the next three years, Fitch said.

The group’s heavy construction company has a strong financial profile and is the main cash generator for OAS, which supports the group’s aggressive growth strategy, the agency said.

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