Moody's: Gol Linhas up to positive

Moody's America Latina said it affirmed the B3 and Ba3.br ratings assigned to Gol Linhas Aereas Inteligentes and to VRG Linhas Aereas SA’s fifth debentures due in 2017. The outlook was changed to positive from stable.

The positive outlook reflects Moody's belief that Gol should be able to sustain the improvements in operating margins and cash flow generation that it achieved since the end of 2012.

The company significantly reduced capacity in step with its domestic market peers in pursuit of higher yields and streamlined its costs to help mitigate earnings pressure of the weakening real currency, the agency noted.

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