Fitch rates Gol Linhas Aereas notes BB-

Fitch Ratings said it assigned a BB- rating to Gol Linhas Aereas Inteligentes SA's proposed senior guaranteed notes due 2020. These notes will be issued through the company's subsidiary, GOL Finance, and will be unconditionally guaranteed by Gol Linhas Aereas and VRG Linhas Aereas SA, a wholly owned subsidiary of Gol Linhas Aereas. The company has a foreign-currency and local-currency issuer default ratings of BB-, $200 million perpetual bonds of BB-, $200 million of senior notes due 2017 of BB- and national scale rating of A-(bra).

The outlook is stable.

The notes will be junior to any outstanding secured debt of the issuer and its guarantors and will rank pari passu with the outstanding $200 million of senior notes due 2017. The target amount of the proposed issue is $200 million to $400 million with the final amount depending on market conditions.

The outlook is stable.

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

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

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