S&P affirms Gol Linhas

Standard & Poor's said that it affirmed the BB- global-scale and brA national-scale corporate credit ratings on Gol Linhas Aereas Inteligentes SA.

The outlook is stable.

The ratings reflect GOL's aggressive financial profile, characterized by increasing aircraft-financing debt to sustain its aircraft fleet expansion program; exposure to the industry's intrinsic risks of cyclicality, price competitiveness and capital intensity; high correlation of demand with GDP; and exposure to volatile costs because of foreign-exchange and fuel price fluctuations, the agency said.

The company's adequate liquidity position, solid market position in the Brazilian airline industry and efficient and cost-competitive operations partially offset the negatives, the agency added.

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