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Strategies & Market Trends : Telebras (TBH) & Brazil -- Ignore unavailable to you. Want to Upgrade?

To: md1derful who wrote (9815)	11/18/1998 2:37:00 PM
From: Steve Fancy	Respond to of 22640

Brazil's credibility is rising, Cardoso Reuters, Wednesday, November 18, 1998 at 11:05 Cardoso said he was confident Congress would pass fiscal measures designed to save $23.5 billion in 1999 and tackle a nominal budget deficit expected to end the year above 7 percent of gross domestic product. "I am certain (Congress) will continue voting today, increasing Brazil's credibility," he said. giancarlo.summa@reuters.com)) Copyright 1998, Reuters News Service

To: md1derful who wrote (9815)	11/18/1998 2:39:00 PM
From: Steve Fancy	Respond to of 22640

Brazil shrs jump 3.2 pct as foreigners boost stake Reuters, Wednesday, November 18, 1998 at 13:02 SAO PAULO, Nov 18 (Reuters) - Brazilian shares jumped 3.2 percent in afternoon trade on Wednesday as foreign investors bought into the market, traders said. Sao Paulo's key Bovespa index (INDEX:$BVSP.X) rose to 8,598 points as renewed optimism over Brazil's economic outlook held strong, luring investors back to market. "The high is continuing," a trader at a local brokerage said. "Part of yesterday's (buy) orders haven't even been carried out. We still have orders from foreigners." Tele Norte Leste (SAO:TNLP4) preferred shares led the surge with an 11.5 percent rise. Traders said foreigners were also snatching up Cemig preferred (SAO:CMIG4), up 6.8 percent in afternoon trade, and Cesp preferred (SAO:CESP4), which had posted gains of 7.8 percent. Copyright 1998, Reuters News Service

To: md1derful who wrote (9815)	11/18/1998 2:40:00 PM
From: Steve Fancy	Read Replies (1) \| Respond to of 22640

S&P cuts Telefonica S.A. ratings Reuters, Wednesday, November 18, 1998 at 13:02 (Press release provided by Standard & Poor's) NEW YORK, Nov 18 - Standard and Poor's today lowered its long-term ratings to single-'A'-plus from double-'A'-minus and its short-term ratings to 'A-1' from 'A-1'-plus on Telefonica S.A. (previously Telefonica de Espana S.A.), Telefonica N.A. Inc., and Telefonica Europe B.V. (see list below). At the same time, Standard & Poor's removed the ratings from CreditWatch, where they were placed with negative implications on July 29, 1998. The CreditWatch listing followed the announcement that Telefonica was to invest $5.5 billion in the privatization of the Brazilian telecom system. The outlook is stable. The downgrade reflects Telefonica's increased exposure to Latin American markets and the slower-than-expected strengthening of its credit ratios. Telefonica's participation in the consortia that won the bids for the largest fixed-line and cellular operators in Brazil consolidates its position as the premier foreign telecom operator in Latin America. While recognizing the potential benefits of Telefonica's Latin America strategy, Standard & Poor's believes that the company's increasing dependence on countries with more unstable and volatile economies weaken its credit risk profile. Almost one-third of Telefonica's consolidated operating cash flow in 1998 will be generated by its Latin American operations. Also, Telefonica's large foreign investments over the past few years have prevented its financial profile from strengthening at the same pace as those of its European peers. While substantial equity financing earlier in the year has enabled Telefonica to maintain its earnings before interest, taxes, depreciation, and amortization net interest coverage ratio at a stable level of about 6.5 times, this level of coverage is now substantially lower than the ratios shown by comparable European telecoms rated in the double-'A' category. Telefonica's ratings continue to be underpinned by its very strong position in the Spanish telecom market. Although the domestic market is set to become more competitive and there are still some regulatory uncertainties, Telefonica's large headcount reduction program should significantly improve the company's operating efficiency and competitive position. Also, the effect of competition on Telefonica's finances should be partly mitigated by the very strong demand growth for mobile communications and data transmission services. OUTLOOK: STABLE Telefonica's potential capacity to reduce debt levels is very strong since its Spanish cash flow approximately covers twice its annual domestic investment program, and most of its Latin American subsidiaries are self-financing their own capital expenditures. Management expects to make only moderate foreign investments going forward and plans to use its excess cash flows to gradually reduce debt in the coming years, Standard & Poor's said. RATINGS LOWERED AND OFF CREDITWATCH NEGATIVE Telefonica S.A. Corporate credit rating A+/Stable/A-1 Bank loan rating A+ Telefonica N.A. Inc.* Commercial paper program A-1 Telefonica Europe B.V.* Senior unsecured medium-term note program A+ Senior unsecured debt A+ Subordinated medium-term note program A Short-term medium-term note program A-1 *Guaranteed by Telefonica S.A. Copyright 1998, Reuters News Service