Oi slips out of IG with downgrade

Oi slips out of IG with downgrade

Corporate & Sovereign Strategy

Fitch downgraded Oi to BB+, from BBB-, on Wednesday as it reevaluated expectations for the financial profile of the company after its merger with Portugal Telecom. It applied the same ratings cut to PT. The downgrade came after PT said it held €847m in paper from Rio Forte Investments, a subsidiary of PT’s shareholder Grupo Espirito Santo. The commercial paper was not paid at maturity on Tuesday. Oi and PT announced changes to the merger agreement on Wednesday as a result. Yet Fitch said: “PT's

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