Fitch rates Gol Linhas note BB+

Fitch Ratings said it assigned a BB+ rating to the proposed $200 million senior notes due 2017 of Gol Finance, a wholly owned financing vehicle of Gol Linhas Aereas Inteligentes SA. The notes will be unconditionally guaranteed by Gol Linhas and Gol Transportes Aereos SA.

The outlook is stable.

Proceeds from the offering will be used to finance Gol Linhas' aircraft purchases.

The agency said Gol Linhas' BB+ foreign- and local-currency issuer default ratings and AA-(bra) long-term national scale rating reflect the company's low-cost structure, strong cash flow generation, business position and moderate financial leverage.

The ratings also reflect the company's exposure to fuel costs and other industry-related risks such as revenue volatility, correlation with the domestic economy and competitive threats, Fitch said.

At Dec. 31, Gol Linhas had a total adjusted debt-to-EBITDAR ratio of 3.1x, which the agency described as strong for the rating category and moderate by industry standards.

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