S&P lowers Latam to stable

Standard & Poor’s said it revised the outlook on Latam Airlines Group SA to stable from positive.

The agency also said it affirmed Latam’s BB global scale ratings and brAA national scale rating on its subsidiary TAM SA.

The outlook revision follows an expectation of the company improving credit metrics in 2015 and 2016, although it is expected at a slower-than-expected pace due to Brazil’s sluggish economy, S&P said.

The company’s focus on improving TAM’s operating efficiency is strengthening consolidated credit metrics, the agency said.

Also, TAM continued to reduce its capacity in Brazil because airline-travel demand did not increase as expected and this market is currently oversupplied, S&P said.

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