Sao Paulo, October 06, 2015 -- Moody's America Latina ("Moody's") has today downgraded Oi S.A.'s ("Oi") corporate family rating ("CFR") to Ba3/A3.br. As part of this rating action, Moody's has also downgraded the ratings on unsecured debt at Oi SA to B1/Baa3.br, one notch below the corporate family rating due to their junior position in the capital structure. The company has significant indebtedness at subsidiary holding companies which have a priority claim on the majority of operating cash flows. The outlook for all ratings remain negative.

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