New York, August 12, 2014 -- Moody's Investors Service ("Moody's") has downgraded the corporate family rating (CFR) of NII Holdings Inc. ("NII" or "the company") to Caa2 from Caa1. The downgrade reflects Moody's expectation that bankruptcy filing is more likely as a result of the company's inability to find a strategic solution to extend its liquidity. The company is currently not in compliance with certain financial covenants in its existing debt obligations which could trigger an event of default for up to $4.4 billion of debt issued by intermediate holding companies NII Capital Corp. ("NII Capital") and NII International Telecom S.C.A ("NIII Telecom"). At the same time, Moody's has lowered the probability of default rating (PDR) to Caa2-PD from Caa1-PD while affirming the SGL-4 speculative grade liquidity. As part of the rating action, Moody's has also downgraded the unsecured notes at NII Capital to Caa3 from Caa2 and the unsecured notes at NII Telecom to Caa1 from B3. Outlook remains negative.
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