Moody’s has put cable company Net Servicos’ Ba1 corporate family rating and Brazilian telecom Embratel’s Baa2 on review for possible upgrades as new regulatory changes look set to shakeup the sector. This comes after the elimination of a 49% foreign ownership cap for Brazilian cable companies and a new law that allows fixed-line telecom companies to offer TV services over their networks, the agency says. The review process was also triggered by the possibility that Embratel, which is majority owned by Mexico’s America Movil, may son become Net’s controlling shareholder and that Net, Claro and Embratel will soon start bundling their telecommunications services. “The acquisition of the controlling interest in Net would allow America Movil to expand its presence and services in Brazil, a critical market for AMX,” the agency says.