Fitch cuts, then upgrades GOL

Fitch Ratings said it downgraded GOL Linhas Aereas Inteligentes SA's long-term foreign- and local-currency issuer default ratings to RD, restricted default, from C, following its debt restructuring which the agency considered a distressed debt exchange. Simultaneously, Fitch raised GOL's IDRs to CCC+ from RD to reflect its post-restructuring risk profile.

Additionally, the agency downgraded Gol Finance Inc.'s unsecured bonds to RD from C, as well as GOL's long-term national scale rating to RD(bra) from C(bra). At the same time, Fitch raised Gol’s unsecured bonds to CCC/RR5 from RD, as well as GOL's long-term national scale rating to CCC(bra) from RD(bra).

“Despite having no major benefit on capital structure and higher interest rates, the transaction improves GOL's financial flexibility. The company has secured access to new a credit line, reduced refinancing risks for 2024-2026 period and lower interest outflows in the medium term (paid-in-kind interests). GOL has access to $451 million of new funds, that could be used for general corporate purposes, including debt prepayment, working capital needs or capex,” Fitch said in a press release.

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