Moody’s lowers Gol

Moody’s Investors Service said it downgraded Gol Linhas Aereas Inteligentes SA’s corporate family rating to Caa1 from B1.

The agency also lowered Gol Finance’s perpetual notes guaranteed by Gol and Gol Linhas Aereas SA and the $350 million of senior exchangeable notes due 2024 issued by Gol Equity Finance and guaranteed by Gol and Gol Linhas Aereas to Caa2 from B2. The outlook is negative.

This concludes the review Moody’s started on March 17, the agency said.

“The downgrade to Caa1 reflects a sharper decline in passenger traffic than initially anticipated and a slower recovery that will prevent passenger demand from reaching 2019 levels before 2023. The International Air Travel Association’s (IATA) latest scenario analysis forecasts a decline in global passenger numbers of around 24% for the full year 2020, while 2019 levels will not be exceeded until 2023,” Moody’s said in a press release.

At the same time Moody’s confirmed the Baa3 the foreign currency rating assigned to Gol LuxCo SA’s term loan guaranteed by Delta Air Lines, Inc. The outlook is negative.

This concludes the review started on March 17, Moody’s said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.