Fitch affirms Gol Linhas; rates Linhas Aereas BB-

Fitch Ratings said it affirmed Gol Linhas Aereas Inteligentes SA's foreign- and local-currency long-term issuer default ratings at BB-, long-term national rating at A-(bra), $200 million perpetual bonds at BB-, $200 million of senior notes due 2017 at BB- and $300 million of senior notes due 2020 at BB-.

Fitch also said it assigned to a foreign-currency issuer default rating of BB- to VRG Linhas Aereas SA, along with a local-currency issuer default rating of BB-, long-term national rating of A-(bra) and an A-(bra) rating to R$500 million senior unsecured debentures due in 2017.

The agency also said it assigned to GOL Finance a foreign-currency issuer default rating of BB- and local-currency issuer default rating at BB-.

The outlook is stable.

The ratings reflect the company's significant market share position in the Brazilian airline sector and consistent business strategy to focus its operations primarily on the Brazilian domestic market, Fitch said.

The ratings also consider the company's cash flow generation, comfortable liquidity and continued decline in leverage during the last several quarters, 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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