Fitch rates Brasil Telecom debentures AA(bra)

Credit ratings agency Fitch has assigned its AA(bra) long-term national rating to Brasil Telecom's third public debentures issuance of 500mn reais (US$165mn) due July 5, 2009. The outlook is stable. Fitch also affirmed the national long-term ratings of AA-(bra) assigned to Brasil Telecom Participações and AA(bra) assigned to Brasil Telecom and its second debentures issuance. Fitch affirmed the international ratings of BB+ assigned to Brasil Telecom Participações' local currency debt and the BBB- assigned to Brasil Telecom. The outlook for all ratings is stable. "The ratings reflect the company's solid market position, low volatility of its cash flow and the manageable levels of its debt. The ratings also consider the higher competition and the current regulatory risk that Brasil Telecom bears," Fitch said in a statement. "The liquidity position of Brasil Telecom is solid due to the cash balance of 2.9bn reais as of March 31, 2004, [and] strong profitability," according to Fitch. To reda Fitch's full report in Portuguese, please paste the following link in your browser: http://www.bnamericas.com/rc_search_detail.xsql?id_documento=52911&Tx_idioma=P