Moody's: Portugal Telecom unchanged

Moody's Investors Service said that the ratings of Portugal Telecom (Baa2/stable) are unaffected by the company's announcement of a final agreement to acquire a direct and indirect 22.4% equity stake in Brazilian mobile operating subsidiary Oi for €3.7 billion.

The ratings factor in the company's confirmation of its use of the cash proceeds received from Telefónica in such a way that the balance between its financial and business risk is not altered, Moody's said.

Portugal Telecom's Baa2 rating reflects its integrated telecoms business model, which allows it to adapt to the developments in the telecoms industry; its management strategy and tolerance for financial risk; and its operating margins and liquidity, the agency said.

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