Oi downgraded to default by Fitch following bankruptcy confirmation

Fitch Ratings has downgraded the Brazilian telecommunications company Oi to default status and subsequently withdrawn all its ratings. The long-term issuer default ratings in both local and foreign currencies were moved from restricted default (RD) to default (D), while the national long-term rating fell from RD(bra) to D(bra).

The agency decided to cease coverage of the company, stating it lacks sufficient information to estimate recovery prospects for creditors. This follows a decision by the First Private Law Chamber of the Court of Justice of the State of Rio de Janeiro (TJRJ) on August 25, 2026, which upheld the company's bankruptcy after rejecting appeals from Itaú Unibanco and Bradesco.

Oi's insolvency involves approximately 44 billion reais (about US$8.6 billion) in debt owed to roughly 164,000 creditors. While the bankruptcy has been confirmed, the company's operations are being maintained provisionally. The legal process follows a period of judicial recovery that began in 2023 and a previous first-instance decision in November 2025 that had initially converted the recovery into bankruptcy due to commercial inviability.