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--FC IDR to 'D' from 'RD' and withdrawn.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