S&P lowers Gol Linhas

Standard & Poor's said it lowered the BB- global-scale corporate credit rating on Gol Linhas Aereas Inteligentes SA to B+, along with its brA Brazil national scale rating to brBBB.

The outlook is negative.

The downgrades reflect the deterioration in Gol's financial risk profile and an expectation that its credit metrics will improve slowly as a result of low yields, stemming from price competition and high fuel costs, S&P said.

The company's business risk profile is considered weak and its financial profile is considered highly-leveraged, the agency said.

The ratings also reflect the company's exposure to the cyclicality and capital intensity of the air transport industry, which leads to high financial leverage, S&P said.

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