S&P revises Gol Linhas Aereas Inteligentes view to stable

S&P said it revised its outlook on Gol Linhas Aereas Inteligentes SA to stable from positive, affirmed the global scale issuer credit and issue-level ratings on Gol at B- and lowered the Brazilian national scale corporate rating on the company to brBBB from brBBB+.

The B- issue-level ratings on Gol's senior unsecured debts are the same as the corporate credit rating. However, S&P said it revised Gol's recovery rating to 4 from 3, given S&P’s expectations of average recovery prospects (30%-50%; rounded estimate 35%) for unsecured creditors.

“The outlook revision and the national scale downgrade reflect that Gol's capital and cost structure are highly exposed to the U.S. dollar, affecting the company's leverage and consequently changing our previous expectation of a quicker deleveraging by the end of 2018,” S&P said in a news release.

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