Fitch affirms Tele Norte Leste

Fitch Ratings said it affirmed Tele Norte Leste Participacoes SA and its subsidiaries.

Tele Norte Leste Participacoes' local-currency issuer default rating was affirmed at BBB, foreign-currency issuer default rating at BBB and national scale rating at AAA(bra).

Telemar Norte Leste SA's local-currency issuer default rating was affirmed at BBB, foreign-currency issuer default rating at BBB, national scale rating at AAA(bra), $1.75 billion senior notes due 2020 at BBB, $750 million senior notes due 2019 at BBB, €750 million senior notes due 2017 at BBB and R$2.25 billion fifth debenture issuance due 2014 and 2020 at AAA(bra).

Brasil Telecom SA's local-currency issuer default rating at BBB, foreign-currency issuer default rating at BBB, national scale rating at AAA(bra), R$1.08 billion fifth debenture issuance due 2013 at AAA(bra) and R$1.1 billion senior notes due 2016 at BBB.

The outlook is stable.

The ratings incorporate the company's strong market position, business scale, diverse service platforms, moderate regulatory risk, solid cash flow generation and a manageable debt maturity profile, Fitch said.

The ratings also reflect an intense competitive environment that has resulted in modest operating results and a long-term expectation that net debt-to-EBITDA should remain about 1.7x, the agency said.

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