Moody's views Gol plan as credit positive

Moody's America Latina Ltda. said the capitalization plan of Gol Linhas Aereas Inteligentes SA (B3/positive) is credit positive. The company plans to raise $446 million of cash with the support of Delta Air Lines, Inc. (Ba2/positive), being $300 million under a debt issuance guaranteed by Delta and up to $146 million of a joint equity investment under which the American company will contribute up to $56 million.

"The transactions are credit positive to Gol because the cash those will bring into the company bolster its financial flexibility while it faces operating cost pressures and slowing growth of demand in its home market, Brazil,” Cristiane Spercel, a Moody's vice president and senior analyst, said in an agency news release.

"In addition to enforcing the companies' partnership, we expect that the guarantee of Delta will lower the interest rate on the notes that Gol would otherwise obtain absent the guarantee.”

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