Fitch Downgrades OAS and Subsidiaries' Ratings to 'D'/'D(bra)'

SAO PAULO--(BUSINESS WIRE)-- Fitch Ratings has downgraded the foreign currency (FC) and local currency (LC) Issuer Default Ratings (IDRs) of OAS S.A. (OAS) and Construtora OAS S.A. to 'D' from 'RD' and their long-term national scale ratings to 'D(bra)' from 'RD(bra)'. In conjunction with the rating action, Fitch has also downgraded OAS Empreendimentos S.A. national scale rating to 'D(bra)' from 'RD(bra)'. A complete list of rating actions follows at the end of this press release.

KEY RATING DRIVERS

The downgrades reflect OAS's filing for bankruptcy protection. On top of OAS S.A., the request for bankruptcy protection involves Construtora OAS S.A., OAS Empreendimentos S.A., SPE Gestao e Exploracao de Arenas Multiuso S.A., OAS Infraestrutura S.A., OAS Imoveis S.A., OAS Investments GmbH, OAS Investments Limited e OAS Finance Limited.

On Jan. 2, 2015, OAS announced the suspension of interest and amortization payments as the terms proposed by banks to refinance the group's debt worsened with the allegations of involvement in the Lava-Jato investigation. OAS has faced difficulties to sell assets due to several injunctions presented by creditors. Fitch believes the bankruptcy protection will facilitate the sale of investments, as with the court's authorization, creditors will not be able to object the decision.

KEY ASSUMPTIONS

--Fitch believes court will accept OAS's filings.

RATING SENSITIVITIES

The company's ratings reached the lowest level in Fitch's rating scale. An upgrade is unlikely at this time given the group's bankruptcy protection filing.

Fitch has downgraded the following ratings:

OAS S.A.:

--FC IDR to 'D' from 'RD';

--LC IDR to 'D' from 'RD';

--National scale rating to 'D(bra)' from 'RD(bra)'.

Construtora OAS S.A.:

--FC IDR to 'D' from 'RD';

--LC IDR to 'D' from 'RD';

--National scale rating to 'D(bra)' from 'RD(bra)'.

OAS Investments GmbH:

--FC IDR to 'D' from 'RD' and withdrawn.

OAS Empreendimentos S.A.:

--National scale rating to 'D(bra)' from 'RD(bra)'.

Fitch also rates the following issuances of the OAS group:

OAS S.A.:

--BRL300 million debentures 3rd issuance due 2016 at 'D(bra)';

--BRL250 million debentures 4th issuance due 2027 at 'D(bra)';

--BRL300 million debentures 5th issuance due 2015 at 'D(bra)'.

OAS Investments GmbH:

--USD850 million senior unsecured notes due 2019 at 'C/RR4'.

OAS Finance Ltd.

--USD500 million perpetual bonds at 'C/RR4';

--USD400 million senior unsecured notes due 2021 at 'C/RR4'.

Additional information is available at 'www.fitchratings.com'.

Applicable Criteria and Related Research:

--'Corporate Rating Methodology' (May 28, 2014);

--'National Scale Ratings Criteria' (Oct. 30, 2013).

Applicable Criteria and Related Research:

Corporate Rating Methodology - Including Short-Term Ratings and Parent and Subsidiary Linkage

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=749393

National Scale Ratings Criteria

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=720082

Additional Disclosure

Solicitation Status

http://www.fitchratings.com/gws/en/disclosure/solicitation?pr_id=982336

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.

Fitch Ratings
Primary Analyst:
(OAS S.A., Construtora OAS S.A., OAS Finance Ltd., and OAS Investments GmbH)
Alexandre Garcia, +55-11-4504-2616
Associate Director
Fitch Ratings Brasil Ltda.
Alameda Santos, 700
7o. andar - Sao Paulo - SP
CEP: 0141-1008-100
or
Secondary Analyst:
Gustavo Mueller, +55-21-4503-2632
Associate Director
or
Primary Analyst:
(OAS Empreendimentos S.A.)
Jose Romero, +55-11-4504-2603
Director
or
Secondary Analyst:
(OAS Empreendimentos S.A.)
Fernanda Rezende, +55-21-4503-2619
Director
or
Committee Chairperson:
Ricardo Carvalho, +55-21-4503-2627
Senior Director
or
Elizabeth Fogerty, +1-212-908-0526
Media Relations, New York
[email protected]

Source: Fitch Ratings

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• IPA Capital Markets Arranges $40.3 Million Financing for 312-Unit Birwood Heights in San Antonio
• eGenesis Announces Clinical Update in Ongoing Expanded Access Study of EGEN-2784 in Patients with Kidney Failure
• Homerun Resources Inc. Extends Term of 1,675,054 Warrants