Moody's rates proposed Brasil Telecom notes Baa2

Moody's Investors Service said it assigned Baa2 rating to Brasil Telecom's proposed $1 billion 10-year senior unsecured notes and affirmed all other Brasil Telecom's ratings.

At the same time, Moody's affirmed the Baa2/Aaa.br ratings for Telemar Norte Leste SA.

The outlook is stable.

Moody's said it views Brasil Telecom and Telemar as similar credit risk following their integration.

The centralization of Brasil Telecom operational and financial management at Telemar, including unified marketing strategies, capital expenditures, cash management and funding decisions, combined with the existence of cross default / acceleration provisions in outstanding debt issues of Telemar, Brasil Telecom and Tele Norte Participacoes, support its view, the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.