S&P revises Gol outlook to stable

S&P said it revised its outlook for Gol Linhas Aereas Inteligentes SA to stable from negative.

“Following Gol's issuance of senior secured notes for $500 million ($200 million in December 2020 and $300 million re-tap in May), other debt refinancing, capital increase for R$423 million, and further negotiations with lessors and other suppliers, the company now has a more comfortable liquidity position, and we believe risks of default in the next 12 months are low. Short-term maturities have consistently fallen in the past three quarters, although they remained relevant: R$2.3 billion as of March 2021,” S&P said in a press release.

The revised outlook reflects lower liquidity pressure until 2022 when leasing obligations and capital expenditure needs increase. S&P noted uncertainty remains about the industry's recovery path and Gol's high leverage.

Concurrently, the agency affirmed its global scale CCC+ and national scale brBB issuer credit ratings on Gol. S&P also affirmed the CCC+ issue-level rating on the senior unsecured notes but revised the recovery rating to 4 from 3, indicating an expectation of average (30%-50%; rounded estimate: 35%) recovery in default.

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