Fitch ups Gol Linhas

Fitch Ratings said it upgraded Gol Linhas Aereas Inteligentes SA's foreign- and local-currency long-term issuer default ratings to BB- from B+, long-term national rating to A-(bra) from BBB(bra), along with its $200 million perpetual notes and $200 million senior notes to BB- from B+ with a recovery rating of RR4.

The outlook is stable.

The upgrade reflects the company's consistent improvements in cash flow generation, comfortable liquidity and continued decline in leverage during the last several quarters, Fitch said.

The upgrade also factors in expectations that the company will continue lowering its net leverage, while maintaining an ample cash position, the agency said.

The company is exposed to fuel cost volatility and other industry-related risks, such as revenue volatility, high operating leverage and increasing competition, Fitch said.

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