S&P lifts Latam, TAM view to stable

S&P said it affirmed the BB- global-scale rating on Latam Airlines Group SA.

The agency also said it affirmed the BB- global-scale rating on TAM SA, a subsidiary of Latam operating in Brazil.

S&P also said it raised TAM’s Brazil national scale rating to brA from brA-.

The agency also said it revised the outlook on the corporate credit ratings to stable from negative.

S&P also said it affirmed the B+ rating on Latam's and TAM's senior unsecured notes.

The ratings on the senior unsecured debt are one notch lower than the corporate rating on Latam due to its subordination to secured debt, such as operating and financial leases and reflecting the high amount of secured debt at Latam, the agency said.

The outlook revision considers an expectation that market conditions in Brazil will be less volatile, although still challenging, and that Latam's strategy to improve operating efficiency will offset most of the remaining potential instability and drive mild profitability improvement in that market, S&P said.

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