S&P lowers Gol Linhas view to negative

Standard & Poor’s said it revised the outlook on the B global scale rating on Gol Linhas Aereas Inteligentes SA to negative from stable and affirmed the rating.

The agency also said it lowered the Brazilian national scale rating on the company to brBB from brBBB-.

The outlook revision reflects expectations that the Brazilian real’s weakening against the dollar will take a toll on the company’s credit metrics, S&P said.

The company’s ongoing efforts to improve operating efficiency will only mitigate the risks from Brazil’s weaker economy, the agency said.

The company’s leverage metrics have sharply weakened since the third quarter of 2014, despite its stronger EBITDA generation, S&P said.

It has no significant dollar-denominated debt maturing in the short term, but a higher interest burden in local currency will pressure its cash flows, the agency said.

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