S&P lifts Gol Linhas to stable

Standard & Poor’s said it revised the outlook on Gol Linhas Aereas Inteligentes SA to stable from negative.

The agency also said it affirmed the company’s global scale rating at B and national scale rating at brBBB-.

The outlook revision reflects Gol Linhas’s improved operating results by cutting excess capacity and through cost control initiatives and additional sales efforts, coupled with less aggressive competition in Brazil, S&P said.

At the same time, the company has been extending its debt-maturity profile and lowering debt cost through refinancing, such as the tender offer for the prepayment of remainder of the 2017, 2020 and 2023 bonds, the agency said.

These factors partly counter the drag from the company’s higher leverage than those of its industry peers, concentration of revenues in a single market and significant exposure to currency variations, S&P said.

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