Fitch upgrades GOL Linhas

Fitch Ratings said it upgraded GOL Linhas Aereas Inteligentes SA's long-term foreign- and local-currency issuer default ratings to B from CCC and national rating to BBB-(bra) from CCC(bra).

The agency also said it upgraded the senior secured notes on GOL's fully owned subsidiaries to B+ with recovery rating of RR3 from CCC+ with recovery rating of RR3. Fitch also upgraded its fully owned subsidiaries' unsecured bond ratings to B with recovery rating of RR4 from CCC- with recovery rating of RR5.

The upgrades reflect an reassessment of GOL's credit risk incorporating the company's recent restructuring executed during 2017, which reduced the company's capacity and cost structure, lowered leverage and improved operational performance, Fitch said.

The ratings actions also consider expectations for GOL to benefit from the Brazilian airline industry's improving fundamentals in 2017 and 2018, the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.