Deals
Fitch Cuts Oi, Portugal Telecom to Junk After Rioforte’s Default
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Fitch Ratings downgraded Brazil’s Oi SA and Portugal Telecom SPGS SA to junk after a unit of Espirito Santo International defaulted on debt payments to the European carrier, which plans to merge with the South American company.
Long-term debt ratings for Oi, the biggest Brazilian phone company, and Portugal Telecom were cut to BB+ from BBB-, Fitch said in a statement yesterday. Rioforte Investments, a subsidiary of Espirito Santo, failed to repay 847 million euros ($1.1 billion) of short-term debt this week. Rioforte owes Portugal Telecom an additional 50 million euros due today. The Espirito Santo group owns 10 percent of Portugal Telecom.