S&P rates Latam notes B+

S&P said it assigned a B+ rating to Latam Finance Ltd.'s proposed senior unsecured notes due 2024.

The issue of $500 million will have a three-year amortization, in 2022, 2023 and 2024, the agency said.

The rating on the proposed issue reflects the full and unconditional guarantee of holding company Latam Airlines Group SA, S&P said.

The proceeds will be used for liability management with senior unsecured bonds at TAM SA, the agency explained.

The issue rating is currently one notch lower than Latam’s BB- corporate credit rating, reflecting the subordination of the senior unsecured notes to the group's secured debt, which includes financial and operating leases, S&P said.

The issue is not expected to have an impact on the company's leverage metrics, but will allow for some improvement in its debt-amortization profile and a slight reduction in interest charges over the medium term, 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.