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Fitch Ratings has upgraded Brazilian telecoms operator Brasil Telecom's (BrT) US$200mn notes to BBB from BBB-, Fitch said in a statement.
The operator's rating outlook was revised to stable from positive.
The notes are supported by a 12-month political-risk insured policy issued by the Overseas Private Investment Corporation (OPIC) and a six-month offshore cash reserve account, which together provide up to 18-months coverage of interest payments during a political-risk event.
The rating of the notes is in line with Fitch's local currency rating of Brasil Telecom and above the sovereign ratings of Brazil, due to the underlying corporate credit quality of the company and structural enhancements for the notes that mitigate certain political risks.
Since 2009, Brasil Telecom has been a subsidiary of telecoms giant Oi (NYSE: TNE).
Use this link to see Fitch's full report.