S&P raises GOL Linhas

S&P said it raised its global scale corporate credit and issue-level ratings on GOL Linhas Aereas Inteligentes SA to CCC+ from CCC and raised the national scale ratings to brB from brCCC.

The rating on GOL's senior unsecured debt is at the same level as the corporate credit rating, reflecting the recovery rating of 4, given the expected average recovery of 35% (rounded).

The agency also affirmed the BB+ issue-level rating on GOL's $300 million term loan, which benefits from full and unconditional guarantee by Delta Air Lines (BB+/positive/--). The issue has a recovery rating of 4, mirroring that of Delta's senior unsecured debt.

The outlook is positive.

“The upgrade of GOL reflects our view that recent restructuring efforts of operations and capital structure, in addition to less volatile operating conditions, will continue to improve cash generation, reducing liquidity pressures and refinancing risks,” S&P said in a news release.

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