Moody's downgrades Gol

Moody's Investors Service said it downgraded Gol Linhas Aereas Inteligentes SA and Gol Finance's corporate family rating to B1 from Ba3. Ratings were placed under review for further downgrade.

The downgrade reflects the continued deterioration in financial strength of Gol and prospects for a further decline in the financial metrics absent a significant improvement in the company's cost structure, according to the agency.

Despite these pressures, ratings acknowledge the company's low-cost business model and strong brand and market share in Brazil, Moody's said.

The issuer has a debt-to-EBITDA ratio of 8.6 times.

© 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.