Fitch lowers Avianca view to negative

Fitch Ratings said it affirmed Avianca Holdings SA’s long-term issuer default rating at BB- and long-term local-currency issuer default rating at BB-.

The agency also affirmed Avianca Leasing LLC’s $550 million unsecured notes due in 2020 at B+ with recovery rating of RR5 and Aerovias del Continente Americano SA’s long-term issuer default rating at BB- and long-term local-currency issuer default rating at BB-.

Also affirmed was Grupo Taca Holdings Ltd.’s long-term issuer default rating at BB-.

The outlook was revised to negative from stable.

The negative outlook reflects the deterioration in the company’s gross adjusted leverage and low liquidity, Fitch said.

It is expected to be challenging for the company to improve its leverage and liquidity metrics during the next quarters at levels previously incorporated in the ratings, the agency said.

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